ARGENTINA’S CHIEF PROSECUTOR ORDERS $100M CRYPTO FREEZE IN LIBRA COIN SCANDAL

- Argentina’s Chief Prosecutor, Eduardo Taiano, ordered the freezing of nearly $100 million in crypto linked to the sale of #LIBRA coins, Clarín reported.

Key Developments:

- LIBRA skyrocketed to a $4.5 billion market cap before collapsing last February raising allegations of a pump-and-dump scheme.

- President Javier Milei promoted LIBRA on X, claiming it would support small businesses. He later deleted his tweet after the token crashed.

- Milei now faces fraud charges, with authorities investigating the token’s financial records and deleted social media posts.

- Before LIBRA’s crash, a small group of wallets holding most of the supply reportedly cashed out. Kelsier Ventures CEO Hayden Davis admitted to making $100M from the project, according to Decrypt.

- Reports claim 40,000 investors were affected, but Milei disputes this, saying only 5,000 were involved.

- Law enforcement, regulators, and international exchanges have been urged to cooperate in freezing funds.

Milei’s Defense:

- Milei insists he shared LIBRA in good faith, believing it could benefit Argentine entrepreneurs.

- He dismissed the impact on local investors, saying:

“Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most.”

- However, this isn’t Milei’s first crypto controversy. In 2022, before becoming president, he was sued for promoting CoinX, a platform that falsely promised massive returns.

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Image: Cato Institute