TLDR
- Argentine prosecutor Eduardo Taiano intensifies probe into $LIBRA cryptocurrency case involving President Milei
- Authorities attempt to freeze approximately $110 million in assets connected to the alleged scheme
- Eight insider wallets reportedly cashed out $107 million before LIBRA’s price collapsed by 90%
- Investigators tracked $4.5 million moving to new wallets, with some funds used to buy another token called POPE
- The scandal has weakened Milei’s political position ahead of midterm elections
Eduardo Taiano, a federal prosecutor in Argentina, has expanded his investigation into the $LIBRA cryptocurrency scandal. The case has placed President Javier Milei under intense scrutiny. Taiano is now moving to freeze around $110 million in assets linked to what many are calling a sophisticated fraud scheme.
The controversy erupted last month following Milei’s public endorsement of the LIBRA token. The president used his official social media accounts to promote the Solana-based memecoin. He claimed it would help small businesses and stimulate economic growth.
The presidential stamp of approval worked like magic at first. LIBRA’s market value skyrocketed almost overnight. It reached a peak capitalization of $4.5 billion as investors flocked to what seemed like a government-backed opportunity.
The celebration was short-lived. Within just 12 hours, LIBRA’s price nosedived by over 90%. This dramatic collapse left countless investors with massive losses and sparked immediate calls for investigation.
Prosecutor Taiano’s office is now reconstructing all financial transactions related to LIBRA. They’re focusing especially on February 14-15, when trading activity hit its peak. Investigators believe this period holds the key to understanding who profited from the scheme.
Digital forensics has become central to the case. Authorities are working to recover deleted social media content. This includes a February 14 tweet where Milei promoted the cryptocurrency before later removing it from his timeline.
Financial analysis from the Kobeissi Letter suggests insider activity. Their report identified eight wallets connected to the LIBRA team that allegedly extracted approximately $107 million before the price collapsed. These wallets operated behind layers of encryption, complicating the trail.
Money on the Move
Recent developments have raised further suspicions. Investigators discovered a $4.5 million transfer from a wallet tied to the scandal. The funds moved to a new digital address, with some money used to purchase another cryptocurrency called POPE. Authorities suspect this might be an attempt to launder proceeds.
Taiano’s investigation goes beyond just financial tracking. He has requested comprehensive communication records. This includes phone logs and visitor records from both presidential buildings – Casa Rosada and the Olivos residence.
The prosecutor is assembling a diverse group of witnesses. The list includes cryptocurrency specialists, blockchain experts, and people close to Milei’s administration. Anyone who might have had advance knowledge of the scheme is being considered.
Milei has attempted to distance himself from the growing controversy. He claimed in a February statement that he simply “spread the word” about LIBRA. This distinction has failed to calm the political storm surrounding what local media now calls “Libragate.”
The scandal has created political problems for Milei. His popularity ratings have dropped noticeably. Building the congressional support needed for his agenda has become more difficult as midterm elections approach.
Argentina’s cryptocurrency regulatory framework faces new scrutiny. Investigators are examining potential oversight failures by both the Central Bank and the National Securities Commission. Questions about how LIBRA was allowed to operate with so little supervision remain unanswered.
International cooperation has become essential to the investigation. Taiano is preparing requests to foreign cryptocurrency exchanges for transaction data. Authorities believe this information will help complete their understanding of how the scheme operated.
The case has exposed vulnerabilities in Argentina’s approach to digital assets. It demonstrates the potential dangers when public figures endorse cryptocurrencies without proper disclosure or regulation.
Blockchain analysis continues to uncover new connections. Technicians are working to map the flow of funds through various wallets and exchanges. This digital detective work has become increasingly important as the investigation progresses.
Public pressure for accountability grows stronger each day. Citizen groups have organized to demand transparency about who profited from LIBRA’s brief rise and dramatic fall. These grassroots efforts are adding to the political pressure on Milei’s administration.
The case highlights broader concerns about cryptocurrency regulation globally. As digital assets gain popularity, the need for clear guidelines and investor protections becomes increasingly apparent. Argentina’s experience with LIBRA may serve as a cautionary tale for other nations.
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