Argentine Prosecutor Applies to Freeze $100M in LIBRA Scandal, Recover Milei's Tweets
The lead prosecutor investigating Argentine President Javier Milei’s alleged involvement in the LIBRA scandal has requested the freezing of $100 million in assets.
In addition, prosecutor Eduardo Taiano has requested the recovery of deleted social media posts—including a tweet from Milei promoting the Solana-based meme token, as well as detailed records of LIBRA transactions.
Milei posted on X about $LIBRA, highlighting its potential of “encouraging economic growth by funding small businesses and startups.”
Hours later, Milei deleted the post and the token's value plummeted, causing millions of dollars in losses. The President's Office issued a statement on the following day, claiming the post was deleted to “avoid speculation and limit further exposure” following public reaction to the project’s launch, and that Milei was not involved in the cryptocurrency's development.
After the scandal erupted following LIBRA's collapsed, Milei stated that shared information about LIBRA in good faith, believing it could benefit Argentine entrepreneurs.
“I shared this the same way I’ve shared hundreds of things,” he explained, emphasizing that his message was one of disseminating information not endorsement.
Milei acknowledged the fallout as a "slap in the face" and a learning experience but downplayed the impact on Argentine investors while claiming that the majority of those affected were from the U.S. and China.
“Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most,” he said. 40,000 investors were reportedly impacted but Milei disputed this figure, stating that only about 5,000 participated. He also argued that most traders were experienced in volatile markets and understood the risks.
Attorneys have since filed fraud charges against Milei, and international exchanges, law enforcement agencies, and regulators have been urged to cooperate in freezing funds.
Milei’s connection to $LIBRA stems from his meetings with Hayden Davis, CEO of Kelsier Ventures, the market maker behind the token. According to reports, Davis met with Milei at least ten times since October 2024. Davis admitted making $100 million from the project.
In an interview with Coffeezilla, Davis dismissed complaints as stemming from investors who were frustrated about missing out on insider deals.
“All the bitching on socials is all the people that don’t get into the deals,” Davis said. “So what do you do then? You don’t launch the project? How do you make money then?”
Blockchain analysts have linked $LIBRA’s insiders to other controversial projects, including Melania Trump’s $MELANIA token, raising alarms about coordinated trading practices.