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Argentina Freezes $507K in Libra Meme Coin Probe Tied to President Milei: Report

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Argentina’s federal court docket has frozen over $507,000 in belongings as a part of an increasing investigation into the Libra (LIBRA) meme coin scandal that has drawn hyperlinks to President Javier Milei.

The transfer marks the newest escalation in what authorities describe as one of many nation’s largest crypto-related fraud circumstances, allegedly involving a multimillion-dollar pump-and-dump scheme.

Federal Judge Marcelo Martínez de Giorgi ordered the freezing of belongings belonging to U.S. businessman Hayden Davis, the founding father of the Libra undertaking, and two crypto operators, Favio Camilo Rodríguez Blanco of Colombia and Orlando Rodolfo Mellino of Argentina.

The freeze, requested by federal prosecutor Eduardo Taiano, was issued to protect belongings that would characterize the proceeds of an enormous fraud in opposition to buyers estimated between $100 million and $120 million.

What Really Happened Behind the $LIBRA Meme Coin Collapse?

According to paperwork reviewed by Argentina’s Secretariat for Financial Investigation, the defendants are accused of working a “monetary den” in the crypto world.

The order imposes an indefinite prohibition of innovation, barring any motion or sale of the frozen belongings till the investigation concludes.

The resolution additionally compels Argentina’s National Securities Commission (CNV) to notify digital asset service suppliers and lengthen the freeze throughout all crypto platforms nationwide.

Investigators allege that Rodríguez Blanco and Mellino acted as intermediaries in changing cryptocurrency into fiat for Davis and two Argentine lobbyists, Mauricio Novelli and Manuel Terrones Godoy, who’ve additionally been implicated.

Authorities traced a number of transactions, together with one on February 17 when Novelli’s kinfolk eliminated baggage from a Banco Galicia department hours after LIBRA’s collapse.

A key transaction noticed $507,500 despatched from Davis by way of the Bitget change simply 42 minutes after President Milei posted a selfie with him, selling Davis as an advisor on blockchain and AI

Prosecutors imagine the funds could represent oblique funds to public officers, with intermediaries appearing as “exit ramps” to obscure the cash path.

Despite LIBRA Scandal, Milei’s Party Secures Surprise Midterm Win in Argentina

Documents recommend that months earlier than LIBRA’s launch, Novelli and President Milei mentioned tasks to “monetize the president’s picture,” reportedly debated on the presidential residence.

While Milei’s lawyer on the time raised issues about potential conflicts of curiosity, leaked textual content messages from Davis appeared to boast of his affect over the Milei household, together with one in which he wrote, “I ship $$ to his sister and he indicators what I say.”

The LIBRA token, launched in mid-February, briefly surged to a $4.5 billion market capitalization after Milei’s put up before crashing by over 94% within hours, wiping out investor funds in a basic pump-and-dump.

Data from Bubblemaps and Lookonchain linked at least eight insider wallets to cash-outs totaling $107 million, with some proceeds reportedly funneled into different meme cash like POPE.

Further Bubblemaps recognized the identical pockets, handle 0xcEA, behind each LIBRA and the MELANIA token, which additionally skilled a fast boom-and-bust earlier this yr.

Source: Bubblemaps

Investigators imagine the sample of cross-chain transfers between Arbitrum, Avalanche, and Solana networks factors to a coordinated insider scheme.

In Argentina, the LIBRA collapse has had political repercussions. Although Argentina’s anti-corruption watchdog later cleared Milei of wrongdoing, claiming he only “spread the word” about the project, his public belief took successful.

Polling by Zuban Córdoba confirmed his approval score dropped from 47.3% in November to 41.6% in March, with greater than 63% of Argentines now viewing him negatively.

However, Milei’s pro-crypto social gathering, La Libertad Avanza, recently scored a surprise victory in the country’s midterm elections, scoring 40.68% of the nationwide vote and successful key areas, together with Buenos Aires province.

The put up Argentina Freezes $507K in Libra Meme Coin Probe Tied to President Milei: Report appeared first on Cryptonews.

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