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- Argentine Judge Marcelo Giorgi has frozen assets linked to the LIBRA memecoin scandal involving figures tied to President Javier Milei.
- The order covers properties and crypto assets belonging to Hayden Davis and two crypto operators under investigation.
- Investigators believe Davis transferred over $500,000 shortly after a public appearance with President Milei, raising suspicion of insider dealings.
Argentina’s LIBRA memecoin scandal has taken a dramatic turn. Federal Judge Marcelo Giorgi has ordered the freezing of all assets connected to Hayden Davis and two crypto operators, marking a major step in the ongoing probe. The decision follows mounting evidence that links financial transactions to possible fraud and political influence.
The “prohibition of innovation” decree affects property and financial holdings of Davis, Argentine national Orlando Mellino, and Colombian Favio Rodriguez. From reports by local media outlets, the ban is to remain in effect “indefinitely.”
Prosecutor Eduardo Taino advocated the proposal after the Secretariat for Financial Investigation and the Directorate for Asset Recovery presented evidence. The move aims to secure investors’ money and prevent the possible draining of laundered funds.
LIBRA investors face massive financial losses amid probe
Authorities believe that hundreds of investors lost between $100 million and $120 million due to the fall of the LIBRA token. They accused Davis of teaming up with other middlemen who helped him funnel these massive transactions through cryptocurrency-to-fiat platforms.
The money laundering trail leads to Davis’ association with his Argentine partners, Mauricio Novelli and Manuel Godoy, who are tied to memecoin activity. Sources state that Davis had also opened a safety deposit box for Novelli. His family extracted bags of money from Banco Galicia within hours after the memecoin crashed.
The suspicious activity justified the judge’s ruling about the reality of potential asset concealment. The court ruling prevents any suspect from unloading money and cryptocurrencies until the end of proceedings.
Judge Giorgi ordered the National Securities Commission to warn all virtual asset providers operating within Argentina. Authorities have expanded the current block to various crypto exchanges to prevent the suspects from moving their money to other countries.
Milei’s Online Post Triggers Scrutiny After Bitget Transaction
Prosecutors further fueled the investigation after they discovered that Davis transferred $507,500 through Bitget only 42 minutes after President Milei posted a selfie with him on social media.
The documents seen by the financial crimes division indicate that there was an attempt to conceal the destination of the money. The intermediaries are believed to be conduits that made it difficult to track money flow.
The LIBRA case has also revealed connections between the promoters of the crypto-asset and political personalities. It has been reported that talks about capitalizing on Milei’s brand had been ongoing for months before the creation of the cryptocurrency. Experts state that the current crisis illustrates the potential that crypto-markets hold for massive deception when intertwined with political marketing.
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