Argentine prosecutor seeks to freeze $110 million in LIBRA assets

An ongoing investigation into Argentine President Javier Milei's involvement in the LIBRA (CRYPTO:LIBRA) memecoin scandal has led Federal Prosecutor Eduardo Taiano to request the freezing of up to $110 million in assets.

The probe also seeks to recover deleted social media posts from Milei, who initially promoted the Solana-based (CRYPTO:SOL) memecoin on February 14, 2025, before quickly deleting the endorsement.

The LIBRA token's market value surged to $4.5 billion following Milei's tweet but plummeted over 90% within hours, sparking allegations of an insider "rug pull" scam.

Insiders linked to the Libra team reportedly cashed out nearly $107 million before the token crashed, according to the Kobeissi Letter.

Taiano's investigation aims to reconstruct financial operations around the time of the memecoin's peak trading volume.

He has requested detailed transaction records and access to information from foreign cryptocurrency exchanges to prevent further fund dispersal.

The scandal, dubbed "Libragate," has led to calls for Milei's impeachment and damaged his political credibility.

Milei has denied wrongdoing, stating he merely shared information about LIBRA without endorsing it.

However, the incident has raised concerns about potential corruption and the influence of cryptocurrency on political figures.

As the investigation unfolds, Milei faces a challenging political landscape ahead of congressional midterm elections.

The scandal has also highlighted the risks associated with speculative cryptocurrencies and the need for stricter regulations to protect investors.

In response to the scandal, prosecutors are seeking phone records and visitor logs from the presidential residence and office, aiming to identify individuals with relevant information.

The case has sparked international interest, with potential class action lawsuits being prepared on behalf of affected investors.