TLDR
- Argentine judge freezes assets linked to LIBRA memecoin, including those of Hayden Davis and associates.
- Federal investigation explores $507K transfer by Davis after selfie with President Milei.
- Crypto operators Mellino and Rodriguez under scrutiny for suspected money laundering activities.
- LIBRA memecoin scam led to millions of losses for retail investors.
- Judge’s precautionary measure aims to preserve assets amid ongoing LIBRA fraud investigation.
An Argentine federal judge has ordered a freeze on assets linked to the ongoing LIBRA memecoin scandal. The case involves key figures, including Hayden Davis, an associate of President Javier Milei, and two crypto operators, Orlando Mellino of Argentina and Favio Rodriguez of Colombia. The judge’s decision follows investigations into large financial transactions connected to the controversial LIBRA cryptocurrency.
Judge Orders Asset Freeze in LIBRA Memecoin Case
Federal Judge Marcelo Giorgi issued a “prohibition of innovation” order, preventing the transfer or disposal of properties and financial assets linked to Davis, Mellino, and Rodriguez. The precautionary measure remains in place indefinitely, with local authorities seeking to preserve assets that might be linked to fraudulent activities.
This move is in response to concerns raised by federal prosecutor Eduardo Taino, who supported the action with findings from a technical report. The report, compiled by Argentina’s financial investigation agencies, linked these individuals to suspicious crypto transactions and money laundering activities.
$500K Transfer Raises Red Flags
Investigations revealed that Davis transferred $507,500 through the Bitget exchange shortly after President Milei posted a selfie with him on social media. The timing of this transaction raised suspicions of possible illegal activities, as the transfer occurred just 42 minutes after the tweet. The prosecution is exploring whether these transfers were part of a larger scheme involving bribery or illicit fund movement.
Mellino and Rodriguez have also come under judicial investigation for their involvement in crypto-to-fiat operations. Both individuals are believed to have acted as intermediaries, facilitating the transfer of large sums between Davis and others linked to the LIBRA project. Reports suggest that multimillion-dollar transactions occurred between them, which may have helped conceal the origins of the funds. The LIBRA memecoin was marketed to retail investors, but the project collapsed amid allegations of fraud.
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Source: https://blockonomi.com/libra-memecoin-fraud-argentine-judge-blocks-assets-linked-to-investor-losses/