📅 May 31, 2025 | ✍️ By YJL260 | 🔗 #CEXvsDEX101 CryptoScam #MILEI
⚖️ The U.S. justice system intervenes in the $LIBRA scandal
A federal court in the Southern District of New York has ordered the freezing of approximately $280 million related to the cryptocurrency $LIBRA, promoted by Argentine President Javier Milei. The measure responds to a class action lawsuit alleging that more than 75,000 investors were victims of a fraudulent scheme.
Federal Judge Jennifer Rochon issued a preliminary injunction that includes:
$110 million in profits controlled by American businessman Hayden Mark Davis.
Approximately $57.65 million in USDC, frozen by the issuer of the stablecoin, Circle, in two wallets linked to the $LIBRA team.
This lawsuit seeks to prevent the funds obtained through the alleged scam from being transferred or used while the legal process is underway.
📉 From promotion to collapse: the trajectory of $LIBRA
On February 14, 2025, President Milei publicly promoted the cryptocurrency $LIBRA as an initiative to encourage investment in the Argentine economy. Following his announcement, the value of the token skyrocketed, reaching a market capitalization of $4.5 billion within hours.
However, shortly after, the price of $LIBRA fell sharply by 85%, resulting in significant losses for thousands of investors. Subsequent investigations revealed that the developers and promoters of the token, including Davis and his company Kelsier Ventures, had sold large amounts of tokens at the peak of its value, making millions in profits.
🕵️♂️ Investigations in Argentina and the United States
While the U.S. justice system advances with the class action lawsuit, investigations have also begun in Argentina. Judge María Servini requested information from the Central Bank about the bank accounts of President Milei, his sister Karina, and other implicated individuals, to analyze the evolution of their wealth since 2023.
Furthermore, records of phone communications and geolocation of those involved, including Davis and other crypto operators, have been requested to reconstruct the interactions before and after the launch of $LIBRA.
🧩 Implications for the crypto ecosystem
This case underscores the importance of transparency and due diligence in the world of cryptocurrencies. The involvement of public figures in promoting digital assets should be accompanied by a rigorous assessment to avoid potential fraud and protect investors.
What do you think about the responsibility of political leaders in promoting cryptocurrencies? Share your thoughts in the comments.