Argentina’s long-running LIBRA memecoin scandal has resurfaced after a federal judge ordered a sweeping freeze on assets linked to the defunct cryptocurrency project.
The decision targets individuals accused of laundering millions through digital assets, including Hayden Davis, an associate of President Javier Milei, and two crypto operators, Orlando Mellino of Argentina and Favio Rodriguez of Colombia.
Judicial Asset Freeze Ordered
Federal Judge Marcelo Giorgi issued a “prohibición de innovación” order, a legal mechanism that prevents the transfer or disposal of assets under investigation. The precautionary measure will remain in effect indefinitely, allowing authorities to preserve potentially illicit funds while investigations continue.
The move follows a request by federal prosecutor Eduardo Taino, supported by a technical report from the Secretariat for Financial Investigation and Recovery of Illicit Assets and the General Directorate of Asset Confiscation.
The report, signed by Maria Bergalli and Maria Chena, linked Davis, Mellino, and Rodriguez to suspicious cryptocurrency transactions, alleged money laundering, and large-scale fraud.
Suspicious Transactions and Allegations
Investigators revealed that Davis transferred $507,500 through the Bitget exchange just 42 minutes after President Milei posted a selfie with him on social media, a coincidence that triggered scrutiny over possible bribery or illicit fund movements.
Prosecutors are examining whether these transfers were part of a broader network designed to disguise the origins of funds tied to LIBRA.
Mellino and Rodriguez allegedly acted as intermediaries in crypto-to-fiat conversions, moving large sums between Davis and other participants in the scheme.
Magnitude of the Scandal
Authorities believe the LIBRA project defrauded investors of between $100 million and $120 million, with significant volumes of money flowing through regional crypto exchanges in early 2025.
Interpol has reportedly issued a red notice for Davis, while Argentine prosecutors continue to trace transactions from February 2025 involving multimillion-dollar transfers.
Renewed Criticism for President Milei
The LIBRA controversy has also reignited criticism of President Milei, who once endorsed the token as part of his pro-crypto agenda. Though he denies any financial involvement, his past promotion of LIBRA has drawn fire from opposition lawmakers demanding greater transparency over his ties to the failed project.