TLDR

• Federal Prosecutor Eduardo Taiano is investigating Argentine President Javier Milei’s involvement in the LIBRA memecoin scandal
• Taiano has requested freezing of up to $110 million in assets connected to the fraud case
• Investigators are seeking to recover deleted social media posts, including Milei’s promotion of the Solana-based memecoin
• At least eight insider wallets linked to the Libra team reportedly cashed out $107 million before the token crashed
• Authorities have identified a recent movement of $4.5 million from a wallet connected to the scandal, with some funds used to purchase a memecoin called POPE

The Argentine federal prosecutor investigating the LIBRA cryptocurrency scandal has ramped up efforts to freeze assets and gather evidence in a case that has drawn in President Javier Milei. Eduardo Taiano, who is leading the probe, has requested the freezing of up to $110 million in assets connected to the alleged fraud.

The investigation centers on the Solana-based memecoin that Milei promoted before its value collapsed. Taiano is working to recover deleted social media posts, including those made by Milei that endorsed the cryptocurrency project.

The prosecutor has asked for detailed records of all LIBRA transactions since its launch. This request aims to reconstruct the financial operations that took place around February 14 to 15, when the memecoin saw its highest trading volume.

Taiano’s team is focusing on preventing the dispersal of funds from the scandal. They have drafted international requests to access information from foreign cryptocurrency exchanges where transactions occurred.

Data shared by the Kobeissi Letter indicates that at least eight wallets identified as insiders linked to the Libra team managed to cash out as much as $107 million. This massive withdrawal happened just before the token’s value crashed.

Investigators have already tracked a recent movement of $4.5 million from a wallet connected to the scandal. Some of these funds were used to purchase another memecoin called POPE, which authorities suspect might be an attempt to launder the money.

How it Began

The scandal began when Milei used his social media platform to promote LIBRA. He claimed it was an initiative that would support small businesses and drive economic growth in Argentina.

Milei’s endorsement caused a rapid increase in the token’s value. This surge attracted thousands of investors hoping to profit from what appeared to be a government-backed project.

The situation changed dramatically within hours when the cryptocurrency’s price collapsed. This sudden crash wiped out millions in investments and sparked accusations of an insider “rug pull.”

LIBRA briefly reached a peak market capitalization of $4.5 billion on February 14. The token then lost over 90% of its value in less than 12 hours, triggering lawsuits and the current federal investigation.

Milei has denied that he promoted the memecoin. In February, he stated that he merely “spread the word” about the project rather than giving it his official endorsement.

The prosecutor has requested phone records and visitor logs from both the presidential residence and office. Taiano is also creating a list of blockchain experts and people close to Milei who might have relevant information about the case.

To help identify those directly involved in the scheme, authorities are examining suspects’ assets. They are reviewing bank accounts, investments, and other holdings that might be linked to funds obtained through LIBRA trading.

The legal framework for cryptocurrencies in Argentina is also under review. Investigators want to determine if there were regulatory oversights or supervisory problems related to LIBRA’s launch and trading.

Local media has dubbed the controversy “Libragate.” The scandal has reportedly damaged Milei’s popularity and made it harder for him to build political alliances ahead of congressional midterm elections later this year.