An Argentine federal judge has ordered the freezing of assets belonging to key individuals behind the controversial LIBRA memecoin project.
This decision comes as investigators probe potential fraudulent activities tied to the digital token’s promotion. The investigation includes scrutiny of financial dealings involving President Javier Milei and his sister, Karina Milei. The ruling was issued on May 14 by Judge María Servini.
The LIBRA Memecoin and Alleged Fraud
The investigation centers on a suspected pump-and-dump scheme involving LIBRA, which garnered significant attention after President Milei publicly endorsed the memecoin on social media in February. Following Milei’s tweet, the token’s market capitalization soared to over $4.5 billion, attracting widespread retail investment. However, its value plummeted by more than 85%, and its liquidity dried up within days, leading to accusations of market manipulation and fraud.
As part of the ongoing probe, Judge Servini also authorized the lifting of banking secrecy for both Milei and his sister, allowing investigators access to their financial records to search for any irregularities or ties to the memecoin’s backers.
Surveillance Footage Raises Questions
Milei’s February 14 tweet, which described LIBRA as a “pathway to financial freedom,” sparked a surge in interest. But the token’s dramatic collapse soon after raised suspicions. Authorities have pointed to Novelli, a key figure in the scheme, as being central to the project’s development. He is accused of facilitating connections between the presidential circle and Hayden Davis, a foreign financier who helped fund the LIBRA project. In connection with this, an Interpol notice has been issued for Davis’ arrest.
Investigators have also flagged suspicious activity surrounding a set of safety deposit boxes rented by Novelli just days before Milei’s endorsement. Surveillance footage later revealed that Novelli’s mother and sister removed large bags from these boxes the day after the tweet went live. According to reports from the Federal Police’s Anti-Money Laundering Division, the weight and handling of the bags suggest they were likely filled with cash.
Kosta Gushterov
Reporter at Coindoo
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Source: https://coindoo.com/argentina-freezes-assets-in-libra-memecoin-fraud-investigation/