$57 Million Crypto Scandal Deepens With LIBRA Founders Under Fire

Federal Judge Marcelo Martínez de Giorgi, who is overseeing the LIBRA coin case in Argentina, has approved a motion to freeze the assets of project co-founder Hayden Davis and two other defendants, according to local media.

Federal Prosecutor Eduardo Taino first requested the measure in March 2025. The legal order, known as prohibición de innovar — applies to Hayden Davis, Colombian citizen Favio Camilo Rodríguez Blanco, and Argentine national Orlando Rodolfo Mellino.

The latter two reportedly own crypto wallets linked to LIBRA’s capital flows. The freeze covers movable and immovable property, including crypto assets, and will stay in place while legal proceedings continue.

The National Securities Commission (CNV) has also instructed digital asset service providers (VASPs) to block the accounts of those involved.

Political Ties and a Cash Mystery

According to prosecutors, Blanco and Mellino acted as intermediaries, converting cryptocurrency into fiat. Authorities suspect ties to two alleged government lobbyists for the LIBRA project — Mauricio Novelli and Manuel Terrones Godoy.

Investigators claim that Novelli’s sister and mother collected bags of cash from a Banco Galicia branch on February 17, 2025, only hours after the LIBRA collapse. Prosecutors believe Blanco may have facilitated the transfers.

Judge Martínez de Giorgi agreed with the prosecution that there was a real risk the defendants might withdraw or conceal funds, justifying the freeze.

The case was initially brought by parliament members Mónica Frade and Maximilian Ferraro, who sought an investigation into the sister of President Javier Milei for alleged influence peddling related to LIBRA’s promotion.

Reports suggesting possible bribes to support LIBRA emerged shortly before the complaint. President Milei was later acquitted by the Anti-Corruption Agency, but this is just one of several lawsuits targeting Davis and the LIBRA team.

In the United States, Burwick Law is leading a class-action lawsuit against the project. Prosecutors initially froze over $57 million in USDC, but a U.S. court later overturned the order.