- Argentina’s prosecutor seeks to freeze $100 million in crypto assets tied to LIBRA token.
- LIBRA, launched on Solana, surged to $4.5B before collapsing amid pump-and-dump allegations.
- Officials investigate LIBRA token for insider trading and possible fraud scheme.
Argentine Chief Prosecutor Eduardo Taiano has started legal action to freeze approximately $100 million in cryptocurrency assets connected to the controversial LIBRA token. The prosecutor has filed multiple requests as part of his investigation, including measures to freeze related assets, obtain comprehensive transaction records, and recover deleted social media content.
The LIBRA token was launched on the Solana blockchain and marketed as an initiative to support Argentine economic development through funding small businesses and startups. The token initially surged to a market capitalization of approximately $4.5 billion. Milei then publicly endorsed the project in February via social platform X, telling his followers that “the world wants to invest in Argentina.”
Following the token’s price collapse, critics alleged it had signs of a pump-and-dump scheme. The coins collapse worsened after evidence surfaced that a concentrated group of wallets holding most of the token supply had liquidated their positions near the market peak. Crypto entrepreneur Hayden Davis of Kelsier, a marketing and investment firm involved with the project, subsequently acknowledged holding approximately $100 million from the initiative.
According to Argentine newspaper Clarín, Taiano has reached out to international cryptocurrency exchanges, law enforcement agencies, and financial regulators seeking cooperation to freeze the funds in question. The prosecutor’s actions come after attorneys filed fraud charges against Milei following his withdrawal of support for the project.
The investigation focuses on determining whether the token was designed as a legitimate financial instrument to support Argentine economic development or if it was created primarily to extract value from investors through artificial price inflation followed by insider selling.
Related: LIBRA Launch Impact: Solana Drops 9%, Bitcoin Fears Grow
The case has drawn comparisons to other politically-associated cryptocurrency tokens that were created in recent months. Most notably, U.S. President Donald Trump and First Lady Melania Trump each launched Solana-based tokens (TRUMP and MELANIA) ahead of the January 20 presidential inauguration. Both tokens experienced price appreciation followed by substantial corrections.
The LIBRA controversy has raised questions about the responsibilities of public officials when promoting financial products, particularly in the minimally regulated cryptocurrency space. Legal experts note that prosecutors will likely examine whether Milei had knowledge of the project’s structure and risk factors before lending his name and office to its promotion.
