TLDR
- In Argentina, federal prosecutor Eduardo Taiano is digging deeper into the LIBRA cryptocurrency controversy that involves President Javier Milei.
- Authorities are aiming to seize $110 million in assets believed to be tied to a suspected fraudulent operation.
- Investigators have tracked $4.5 million being funneled through wallets associated with the alleged scandal, raising money laundering concerns.
- The prosecutor is demanding the restoration of removed social media content, which includes promotions of the token by Milei.
- Within a matter of hours, LIBRA’s market value nosedived by 90% following a peak of $4.5 billion, leading to substantial investment losses.
Argentine federal prosecutor Eduardo Taiano has intensified his efforts in probing the LIBRA cryptocurrency scandal that includes President Javier Milei, and concerns about fraud, bribery, and undue influence. He's looking to freeze around $110 million worth of assets linked to this contentious digital currency.
The investigative focus is narrowing in on a Solana-based memecoin that President Milei endorsed in February, touting $LIBRA as a boon for small businesses and economic growth in Argentina.
The endorsement by the president caused a quick inflation in the token’s value, with many investors eager to join a seemingly official project.
But things went awry soon. LIBRA’s value diminished by over 90% a mere 12 hours after reaching its apex of $4.5 billion, inciting outrage and wiping out considerable investments.
Prosecutor Taiano has mandated the acquisition of comprehensive transaction records pertaining to $LIBRA since its inception. His team is keen on identifying the profiteers, with a particular focus on rebuilding the fiscal activities around February 14 and 15 when trading was at its zenith.
Preserving digital evidence has become a critical facet of the probe, with authorities endeavoring to recover erased social media entries, including President Milei's now-deleted tweet from February 14 endorsing the cryptocurrency.
Per data from the Kobeissi Letter, insiders involved with the Libra initiative, using eight specific wallets, managed to liquidate $107 million before the token's abrupt crash, with tracking efforts being complicated by encrypted wallet technology.
The controversy started with a post by President Milei at 5:01 PM ET.
Similar to the buzz around President Trump’s memecoin launch, the initial reaction was rife with speculation.
Was this a hack or a real launch?
The emergence as genuine was confirmed after other politicians in Argentina shared the news. pic.twitter.com/cL0ZQgxtCB
— The Kobeissi Letter (@KobeissiLetter) February 15, 2025
To prevent any further monetary dispersal, Taiano is pushing to halt activities among implicated digital addresses. Additionally, he's putting together cross-border warrants to pull transaction data from offshore cryptocurrency platforms.
Following the Money Trail
Investigators have flagged some suspect transactions, noting a $4.5 million shift from the scandal's linked wallets into a fresh digital address, where some of those funds were used on acquiring another memecoin labeled as POPE, seen by some as an attempt to clean money.
The investigation isn’t limited to the financial trail. Taiano is also trying to obtain phone records and entry logs from the president's office and residence to uncover possible conspirators.
Compiling a witness list is underway, including blockchain aficionados and anyone close to the president potentially privy to the scheme.
President Milei has countered the allegations by asserting in February that he just “spread the word” about LIBRA rather than actively promoting it. However, this retort hasn't alleviated the burgeoning scandal.
Locally dubbed “Libragate,” the scandal is tarnishing Milei's standing and complicating his efforts to forge political partnerships ahead of this year’s congressional midterms.
The scrutiny is now on the legal framework governing cryptocurrencies in Argentina, with investigators looking into potential lapses in how $LIBRA was regulated and supervised, especially examining roles of the Central Bank and the National Securities Commission.
As the inquiry unfolds, various measures are being implemented to decrypt LIBRA’s operations and its financial repercussions. Global collaboration is deemed essential to unlock all pertinent transactional info.
This case heightens concerns about cryptocurrency oversight in Argentina, signaling dangers when prominent figures endorse digital currencies without comprehensive regulation and transparency.
