Argentine Judge Freezes Assets in LIBRA Memecoin Investigation – Coincu

A federal judge in Argentina ordered the freezing of assets for individuals linked to the LIBRA memecoin project on May 16, following allegations of fraud. Investigators are examining ties between President Javier Milei and his sister Karina Milei with the controversial project.

The investigation into LIBRA marks a significant moment as it examines a sitting head of state’s role in a cryptocurrency scandal. Investor losses reached approximately $250 million due to a liquidity crisis, raising concerns among the crypto community.

Argentine President’s Involvement in Crypto Scandal Under Investigation

Key figures, including President Milei, are under scrutiny due to allegations of fraud involving the LIBRA memecoin. The asset freezing aims to secure financial evidence for potential fraud charges. Judicial authorities are reviewing financial operations of those linked to the project for any signs of misconduct. Judge María Servini, Federal Judge, said, “The lifting of bank confidentiality will allow us to examine the financial activities of those involved more thoroughly.” More details on the legal proceedings can be found here.

The controversy stems from improper promotion practices. Following President Milei’s endorsement, LIBRA’s market capitalization soared but quickly collapsed due to insider selling. This instability has raised broader concerns in Argentina’s crypto market, despite no direct impact on major cryptocurrencies.

No official comments have been issued by President Milei or major crypto influencers regarding the investigation. The lack of response from key figures highlights the sensitivity surrounding the matter. The financial community remains watchful, awaiting further developments.

LIBRA’s Market Turmoil and Potential Regulatory Impacts

Did you know? The LIBRA investigation is unprecedented, involving the first crypto scandal linked to a sitting head of state, drawing parallels to past celebrity-endorsed crypto controversies.

LIBRA remains volatile with a current price of $0.03 and a market cap of $6.81 million, as reported by CoinMarketCap. Its recent market fluctuations include a 25.88% jump over seven days despite a 92.45% decline over 90 days. Trading volume reached $408,518.69, reflecting trading hesitation.

Coincu analysts predict significant regulatory fallout from this investigation. They anticipate heightened scrutiny on cryptocurrency projects involving political endorsements, potentially enforcing stricter disclosure requirements. This case could become a precedent for how regulatory bodies address political figures’ involvement in crypto markets.