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Argentine Prosecutor to Freeze $100M Crypto Amid LIBRA Fraud

The ongoing investigation into LIBRA, a Solana-based meme token, has escalated, with Argentine prosecutors seeking to freeze $100 million in crypto assets linked to the alleged fraudulent scheme. President Javier Milei, who previously promoted LIBRA, has distanced himself from the controversy, but investigators continue to press forward.

Prosecutors Target LIBRA Transactions

Lead prosecutor Eduardo Taiano has requested:

  • Freezing of funds connected to LIBRA transactions
  • Recovery of deleted social media posts, including a tweet from President Milei endorsing the token
  • Detailed records of wallet movements related to LIBRA

The move follows LIBRA’s meteoric rise to a $4.5 billion market cap before its sudden collapse, sparking allegations of a pump-and-dump scheme.

Milei’s Role in the LIBRA Controversy

Last month, President Milei promoted LIBRA on social media, claiming it would attract investment and support Argentina’s economy. However, after the token’s crash, he deleted the post, prompting accusations of misleading investors.

Attorney Hayden Davis, a crypto entrepreneur linked to marketing firm Kelsier, admitted to cashing out $100 millionfrom the project. Reports indicate that a small number of wallets controlled most of LIBRA’s supply before its collapse.

International Cooperation in Asset Seizure

According to Argentine daily Clarín, Taiano has sought international law enforcement cooperation to track and seize LIBRA-related funds. Regulators and major crypto exchanges are being urged to assist in identifying and freezing illicit transactions.

Milei’s Troubled History with Crypto Scandals

While President Milei has gained popularity among libertarians and Bitcoin enthusiasts, his track record with crypto projects has been questionable. In 2022, before taking office, he was sued over CoinX, a crypto platform that falsely promised high returns to investors.

His involvement in LIBRA echoes the recent surge in political meme tokens, such as TRUMP and MELANIA, which skyrocketed before plummeting in value.

As the investigation unfolds, Milei’s political reputation and financial credibility remain under intense scrutiny.

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