Argentine Federal Prosecutor Ramps up LIBRA Investigation

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• Argentine federal prosecutor Eduardo Taiano has intensified the investigation into the $LIBRA cryptocurrency scandal, focusing on alleged fraud, bribery, and influence peddling
• The probe involves President Javier Milei and businessmen accused of profiting approximately $110 million through the digital asset
• Authorities are pursuing international cooperation to access transaction information and aim to freeze assets linked to the cryptocurrency.​

Argentine federal prosecutor Eduardo Taiano has escalated the investigation into the $LIBRA cryptocurrency scandal, targeting allegations of fraud, bribery, and influence peddling. The case implicates President Javier Milei and a group of businessmen who allegedly amassed around $110 million through the digital asset. Authorities are seeking international assistance to access transaction data and intend to freeze assets associated with the cryptocurrency.​

Preservation of Digital Evidence and Transaction Tracking

The controversy began last month when Milei used his social media platform to promote $LIBRA, calling it an initiative that would support small businesses and economic growth. The endorsement led to a rapid increase in the token’s value, attracting thousands of investors eager to cash in on what seemed to be a government-backed project. However, within hours, the cryptocurrency’s price collapsed, wiping out millions in investments.

This led to Prosecutor Taiano’s office launching an investigation, and Taiano has ordered the collection of detailed records for all transactions linked to $LIBRA since its inception, aiming to identify profit beneficiaries. Additionally, efforts are underway to recover deleted social media posts, notably President Milei’s February 14 tweet promoting the cryptocurrency. 

Authorities are reconstructing financial transactions from February 14 and 15, periods of peak activity for $LIBRA. While the total transaction volume is known, identifying operators remains challenging due to encrypted digital wallets.​

Asset Freezing and International Cooperation

To prevent fund dispersion of gains, Taiano has requested the freezing of digital addresses identified in the investigation, aiming to hinder the movement or transfer of assets obtained through fraudulent operations. The prosecutor is also drafting international warrants to access information on transactions conducted via foreign cryptocurrency exchange platforms. Steps have been initiated with international bodies and regulatory entities to obtain financial transaction records and determine potential money laundering attempts.​

Identifying those directly responsible for the scheme is another investigative focus. Taiano has requested reports on telephone communications and records of visits to the Casa Rosada and the Olivos estate to establish possible links among those involved. A list of witnesses is being compiled, including blockchain and cryptocurrency experts, as well as individuals close to the presidential entourage who may have had prior knowledge of the scheme. The prosecutor is also analyzing the suspects’ assets to detect potential unjustified increases or suspicious financial movements, reviewing bank accounts, investments, and other assets possibly linked to funds obtained through $LIBRA trading.​

Millions on the Move

Investigators have identified a recent movement of $4.5 million from one of the wallets associated with the scandal to a new digital address, with part of these funds used to purchase a memecoin called POPE, interpreted as a potential money laundering attempt. The legal framework applicable to cryptocurrencies in Argentina is under scrutiny to determine if there were regulatory and supervisory irregularities concerning $LIBRA, as well as actions by the Central Bank and the National Securities Commission related to its commercialization.​

As the investigation progresses, authorities will continue implementing measures to clarify $LIBRA’s operation and its impact on financial markets. Collecting digital evidence, fostering international cooperation, and analyzing assets are crucial to determining the responsibility of those involved and defining the judicial process’s next steps.