Argentine prosecutors request the freezing of digital assets worth over $100 million raised through the collapsed meme coin project Libra.
Local media outlet Clarin reported that the lead prosecutor, Eduardo Taiano, has initiated the next phase of his investigation into LIBRA, which allegedly generated $110 million in profit for Argentina’s President Javier Milei and other businessmen.
In the new investigation phase, Taiano seeks to freeze illicit gains generated through the LIBRA controversy. Specifically, the prosecutor asked foreign crypto exchanges and law enforcement agents to cooperate in tracking and freezing the assets.
Investors Left in Ruins After LIBRA Collapse
For context, LIBRA left many investors in ruins after it plunged tremendously from its peak valuation of $4.5 billion. The token spiked to this peak shortly after Milei promoted the token on social media last month. In a now-deleted post, Milei claimed the meme coin would boost Argentina’s economy by funding small businesses and startups.
Expectedly, the post attracted investors’ attention to the token, driving its valuation to $4.5 billion. However, the surge was short-lived, as LIBRA’s value plummeted almost immediately, leaving many in losses.
However, some early investors cashed out before the plunge. Hayden Davis, CEO of investment company Kelsier, admitted he made $100 million from the project.
Prosecutors Move to Preserve Digital Evidence
In the meantime, the lead prosecutor is interested in preserving digital evidence linked to the LIBRA project. Taiano requested the recovery of deleted social media posts promoting LIBRA and the token’s blockchain record since its launch.
This initiative aims to identify the beneficiaries of LIBRA’s collapse and their associated blockchain wallets. Taiano wants the funds held in the identified wallets frozen.
Notably, prosecutors have identified some of the associated wallets, with one of them moving $4.5 million to a new address.
The lead prosecutor is also seeking a warrant to obtain LIBRA-related information from offshore exchanges and financial entities to identify potential money laundering activities.
Furthermore, prosecutors are compiling a list of witnesses to testify against the main defendants. This stage of the investigation will also evaluate LIBRA’s regulatory oversight to assess any irregularities with Argentina’s crypto regulation.
In the meantime, LIBRA is trading at $0.11 per token and has a market cap of $28.3 million.