Argentine Judge Freezes Libra Meme Coin Assets Over Potential Ties to Milei

• Asset Freeze Details: A judge ordered the freezing of assets belonging to Hayden Davis, CEO of Kelsier Ventures, and two intermediaries amid investigations into the Libra token’s promotion.

• Timing of Transactions: Davis transferred $507,500 via Bitget exchange shortly after Milei’s social media post featuring him, raising suspicions of fund flows.

• Token’s Volatile History: Launched in February 2025, Libra surged to billions in market cap before plummeting 90%, with on-chain links to other controversial meme coins.

Explore the Libra meme coin scandal: Argentine judge freezes assets tied to President Milei’s promotion. Uncover details on Hayden Davis’s role and crypto risks—stay informed on blockchain controversies today.

What is the Libra Meme Coin Scandal?

The Libra meme coin scandal centers on a Solana-based cryptocurrency token named Libra, which was heavily promoted by Argentine President Javier Milei on social media in early 2025. Launched in February as a supposed initiative to support small businesses in Argentina, the token rapidly inflated to a multi-billion-dollar market capitalization before crashing over 90% in value within hours, causing widespread investor losses and prompting Milei to delete his promotional posts. This event has sparked investigations into potential misconduct, including asset freezes linked to key figures behind the project.

How Did the Asset Freeze Involving Hayden Davis Unfold?

An Argentine judge recently ordered the freezing of assets connected to Hayden Davis, CEO of Kelsier Ventures, and two alleged intermediaries, Favio Camilo Rodríguez Blanco and Orlando Rodolfo Mellino, in relation to the Libra meme coin scandal. The decision stemmed from a technical report by the Secretariat for Financial Investigation and Recovery of Illicit Assets, along with the General Directorate of Asset Recovery and Asset Confiscation from the Public Prosecutor’s Office. Investigators uncovered evidence of potential indirect payments to public officials, with Davis transferring approximately $507,500 through the Bitget crypto exchange just 42 minutes after President Milei shared a social media selfie with him on January 30, 2025. In the post, Milei praised Davis for advising on blockchain and artificial intelligence applications in Argentina.

While no direct evidence ties the funds to Milei or his close associates, the prosecutor’s office has suggested that intermediaries like Blanco and Mellino may have served as conduits to obscure transaction trails. For instance, Blanco is accused of facilitating cash movements via safe deposit boxes mere hours after Libra’s value collapse. The freeze will remain in place until the ongoing case concludes, aiming to preserve assets for potential recovery. This action underscores the growing scrutiny on high-profile endorsements in the cryptocurrency space, where rapid token launches can lead to significant financial fallout.

Analytics from firms like Bubblemaps have further connected on-chain activities from Libra to the earlier launch of a meme coin associated with U.S. First Lady Melania Trump in January 2025. That project similarly experienced a brief surge followed by a sharp decline, drawing parallels in promotional tactics and market manipulation concerns. Experts in blockchain forensics emphasize that such patterns often indicate coordinated efforts to exploit celebrity influence for short-term gains.

Frequently Asked Questions

What Role Did Argentine President Javier Milei Play in the Libra Meme Coin Launch?

President Javier Milei promoted the Libra meme coin on social media in February 2025, presenting it as a tool to fund small businesses amid Argentina’s economic challenges. His endorsement, including a selfie with Hayden Davis, contributed to the token’s initial hype, but he later removed the posts following the 90% crash. Investigations now examine whether this involvement crossed into unethical territory, though Milei has not been directly charged.

Why Was Hayden Davis’s Connection to the Libra Token Investigated?

Hayden Davis, as CEO of Kelsier Ventures, was a key figure in launching the Libra token on Solana. Suspicion arose from his $507,500 transfer via Bitget shortly after Milei’s public endorsement, prompting probes into possible indirect payments to officials. Argentine authorities, supported by financial investigation reports, froze his assets and those of intermediaries to trace any illicit flows, reflecting broader concerns over meme coin integrity.

Key Takeaways

• High-Risk Promotions: Celebrity endorsements like President Milei’s can drive meme coin volatility, leading to rapid gains but severe crashes and legal repercussions for all involved parties.
• Investigation Parallels: The Libra case mirrors U.S. probes into related tokens, with Argentine focus on Davis and lobbyists versus American emphasis on operational masterminds, highlighting international crypto regulatory differences.
• Investor Caution: Always verify token fundamentals beyond hype; conduct due diligence on projects tied to public figures to mitigate risks from potential scams or manipulations.

Conclusion

The Libra meme coin scandal exemplifies the perils of unregulated cryptocurrency promotions, particularly when involving political figures like Argentine President Javier Milei and promoters such as Hayden Davis. With assets frozen and investigations ongoing into potential indirect payments and asset movements, this case reinforces the need for transparency in blockchain projects. As global regulators intensify scrutiny on meme coins and their ties to high-profile individuals, investors should prioritize verified information and robust platforms. Stay vigilant in the evolving crypto landscape to navigate future developments safely.

The unfolding investigations in Argentina and the parallel U.S. proceedings reveal deeper issues in how meme coins leverage public personas for market pumps. Documents from the case indicate discussions three months prior to launch about monetizing Milei’s image through such projects, with lobbyists like Mauricio Novelli and Manuel Terrones Godoy allegedly involved. Novelli reportedly viewed Milei’s persona as a personal asset exempt from certain ethics laws, a claim now under judicial review. In the U.S., a class action lawsuit accuses figures like Milei and Melania Trump of serving as mere props in a broader scheme orchestrated by Meteora co-founder Benjamin Chow, with Davis operating under directives. Earlier, U.S. courts had frozen $58 million in related crypto assets in May 2025, only to release them in August due to doubts about the plaintiffs’ success. Despite requests for comment from Kelsier Ventures, Novelli, and Terrones Godoy, no responses were received. This lack of accountability amplifies calls for stricter international standards on crypto endorsements.

Libra’s brief lifespan—from launch to collapse—mirrors a pattern in the meme coin sector, where speculative fervor often outpaces sustainable value. On-chain analysis linking it to the Trump-associated token suggests shared networks, potentially involving sophisticated laundering techniques via intermediaries. The prosecutor’s emphasis on “exit ramps” like safe deposit boxes illustrates the challenges in tracing funds in decentralized finance. For Argentina, grappling with economic instability, such scandals erode trust in innovative technologies like blockchain, which Milei has championed as allies to freedom. Yet, experts from financial oversight bodies stress that true adoption requires ethical frameworks to prevent exploitation.

Looking ahead, the resolution of the asset freeze and related cases could set precedents for handling celebrity-driven crypto ventures worldwide. Stakeholders in the Libra meme coin scandal face mounting pressure to disclose full transaction histories, potentially unveiling more connections. Investors and policymakers alike should monitor these developments closely, as they may influence future regulations on digital assets and public endorsements.