Court orders Central Bank to reveal Milei’s financial records in LIBRA case.
Accounts of Milei’s associates frozen amid ongoing civil and criminal probes.
Hayden Davis, linked to LIBRA, remains uninvestigated despite central role.
An Argentine court has ordered the Central Bank to remove bank secrecy protections on President Javier Milei’s financial records. This move allows federal prosecutors to examine his accounts as part of ongoing investigations into his involvement with the LIBRA memecoin controversy. The order came from Federal Judge Maria Servini on May 16, more than three months after Milei’s promotional post on the social platform X triggered a market upheaval.
LIBRA Memecoin Promotion and Market Impact
President Milei promoted the LIBRA memecoin in February, which caused a sharp price surge followed by a steep crash. Insider sell-offs led to massive losses for investors as the token’s market capitalization reached a high of $4.5 billion before collapsing. Milei deleted the post and denied profiting from the promotion, but investigations continue. Judicial and legislative inquiries in Argentina have kept the case under close scrutiny.
The court order also applies to Milei’s sister, Karina Milei, who serves as Argentina’s secretary general, along with three associates tied to the case. Judge Servini instructed the Central Bank of the Argentine Republic (BCRA) to provide a full report of all bank accounts held by the President, his sister, and the associates. The data requested covers records from 2023 to the present. This confidential dossier will support ongoing civil and criminal probes into the memecoin incident.
Freezing of Accounts Linked to the Scandal
The court has frozen accounts belonging to three of Milei’s associates. These include Mauricio Novelli, a businessman linked to the crypto sector; Manuel Terrones Godoy, a founding partner at Tech Forum; and Sergio Morales, a former advisor to Argentina’s National Securities Commission. Reports indicate Novelli served as the connection between Milei and Hayden Davis, one of LIBRA’s creators. Victims of the crash have filed a civil lawsuit against the President and these individuals.
Surveillance footage has emerged showing Novelli’s mother, Maria Pia Novelli, and sister, Maria Alicia Rafaele, withdrawing large sums from a Banco Galicia branch in Buenos Aires. The footage depicts the two entering the bank with empty bags and leaving nearly an hour later carrying full bags. Notably, Novelli rented ten safety deposit boxes at this bank days before Milei’s LIBRA promotion.
Potential Legal Consequences for President Milei
President Milei faces both civil and criminal charges linked to the LIBRA scandal. He maintains that his promotion was made in good faith and denies wrongdoing. Despite this, Milei missed a virtual mediation hearing tied to the civil lawsuit. Opposition lawmakers and civil groups have called for impeachment and an independent parliamentary investigation to examine allegations of market manipulation and abuse of office.
Critics express concern that investigations have progressed slowly with no clear outcomes after three months. Some suspect Milei’s presidential influence might impede effective prosecution. Meanwhile, Hayden Davis, a central figure in the LIBRA incident, remains free from investigation. Davis has connections to other memecoins, such as MELANIA, but has maintained a low profile since the scandal unfolded.
