Argentine federal prosecutor Eduardo Taiano is pushing to freeze over $110 million in proceeds tied to the controversial Libra memecoin. The token gained traction after a social media endorsement by President Javier Milei.
According to local media reports, the case is now under intense scrutiny, with investigators working to recover deleted posts and obtain phone records linked to the scandal.
The Solana-based memecoin briefly climbed past $2 billion in market cap after Milei’s X post promoting it as a project to fund small businesses and startups. However, the token quickly collapsed by over 90%, leaving its current fully diluted valuation at around $100 million, according to DexScreener.
A key figure in the scandal is Hayden Davis, CEO of Kelsier Ventures, who allegedly played a central role in getting Milei to promote Libra. In a video posted to X, Davis claimed to be an advisor to the president, a statement now under scrutiny. A photo of him with Milei, originally posted on the president’s X account in January, has also been deleted.
Davis later admitted in an interview with YouTube investigator Coffeezilla that he holds over $110 million from the token’s launch—$100 million in stablecoins and $13 million in liquidity provider fees.
The Argentine President was charged with fraud over his involvement in the $LIBRA token project. The lawsuit, filed by a group of Argentine lawyers alongside former Central Bank head Claudio Lozano, claims Milei played a crucial role in the scheme.
Milei endorsed the $LIBRA token in a pinned post on X, describing it as a private initiative aimed at boosting small businesses in Argentina. “This private project will be dedicated to encouraging the growth of the Argentine economy by funding small Argentine businesses and startups,” he wrote in Spanish. His post, however, has since been deleted.
Milei endorsed the $LIBRA token in a pinned post on X, describing it as a private initiative aimed at boosting small businesses in Argentina. “This private project will be dedicated to encouraging the growth of the Argentine economy by funding small Argentine businesses and startups,” he wrote in Spanish. His post, however, has since been deleted.
The token surged after Milei’s promotion but crashed within hours as eight wallets linked to the project team liquidated their holdings. Blockchain analytics firm Bubblemaps noted that 83% of the token’s supply was concentrated in a small cluster of wallets, raising concerns over a coordinated exit.
For his part, Milei denied any prior knowledge of the token’s operations and defended himself against the allegations. His administration announced that the Anti-Corruption Office (OA) will launch its own investigation to determine if any government officials, including the president, engaged in improper conduct. The announcement comes as members of the opposition call for an impeachment trial.
