An Argentine federal judge has taken a significant step in the investigation into the LIBRA memecoin project by ordering the freezing of assets belonging to key figures involved in the scheme. The order came as part of a probe into potential fraud linked to the promotion of the digital token, with a particular focus on President Javier Milei and his sister, Karina Milei.
Judge María Servini issued the ruling on May 14, allowing investigators to delve into the financial operations tied to the LIBRA project. The judge also authorized the lifting of banking secrecy protections for Milei and his sister, opening up their financial transaction history for scrutiny.
The suspicion surrounding the LIBRA project was fueled by surveillance footage that raised questions about potential market manipulation and insider profiteering. Milei’s public endorsement of LIBRA on social media led to a surge in retail investment, pushing the token’s market cap to over $4.5 billion. However, the token’s price quickly collapsed, leading to allegations of fraud and manipulation.
The investigation has identified key individuals, including Novelli, Manuel Terrones Godoy, and Sergio Morales, as central figures in the suspected pump-and-dump scheme. Authorities have also issued an Interpol notice for the arrest of Hayden Davis, a foreign financier linked to the project.
Surveillance footage showing Novelli’s mother and sister removing bags from bank safety deposit boxes following Milei’s endorsement of LIBRA raised further suspicions. The bags were reportedly heavier upon exit, suggesting they may have been filled with large sums of cash.
In response to the investigation, Judge Servini ordered a 90-day freeze on the assets of the key individuals involved in the scheme. This measure aims to prevent the sale or transfer of properties and vehicles while prosecutors delve into the alleged financial crimes.
LIBRA was marketed as a solution for Argentines looking to escape inflation and currency controls. However, critics have accused the project of lacking transparency and using political influence to attract investors. Milei has denied any personal gain from the venture and has since deleted the tweet promoting LIBRA.
The investigation has sparked political fallout, with opposition lawmakers calling for an independent inquiry into Milei’s involvement. Questions have been raised about whether his endorsement of LIBRA constituted an abuse of office or market manipulation.
As the investigation continues to unfold, the presidency has yet to respond to the latest judicial actions. The probe into the financial links between Milei’s inner circle and the promoters of the LIBRA project is ongoing, with implications for both the individuals involved and the broader cryptocurrency landscape.