Аргентинский суд замораживает активы создателя мем-токена LIBRA на фоне растущего скандала Headline: Argentine court freezes assets of LIBRA meme token creator amid growing scandal

A federal judge in Argentina has ordered the freezing of both movable and immovable assets, as well as financial holdings of Hayden Davis, the creator of the meme token LIBRA, along with two alleged intermediaries involved in the withdrawal of funds following the token’s collapse. This information has been reported by local media.

The ruling came after the investigation uncovered potential «indirect payments to government officials» from Davis. Specifically, it pertains to a transfer of $507,500 made via the cryptocurrency exchange Bitget, which he sent just 42 minutes after Argentine President Javier Milei posted a joint selfie with him. In a tweet, Davis referred to himself as a consultant on blockchain and artificial intelligence.

The other two individuals involved, Orlando Rodolfo Melino and Favio Camilo Rodriguez Blanco, are said by the prosecution to have acted as conduits to obscure the tracking of funds. Blanco allegedly assisted in transferring money using bank cells just hours after LIBRA’s failure. Subsequently, some assets were forwarded to Argentine entrepreneurs Mauricio Novelli and Manuel Terrones Godoy, who had been promoting the token.

Despite the lack of concrete evidence, the judge granted the prosecution’s request. The assets of the three individuals will remain frozen until the investigation concludes to prevent their alienation or transfer and to ensure subsequent confiscation.

According to case materials, three months prior to LIBRA’s launch, Novelli and Milei discussed creating projects aimed at «monetizing the president’s image.» The entrepreneur claimed that the image of the libertarian leader constituted a «personal asset,» which could be used freely without violating the Public Ethics Law.

Launched in February, LIBRA was marketed as a means to finance small businesses in Argentina. After promotions on social media by the head of state, it reached a market capitalization of $4.56 billion, only to plummet by over 90% within hours.

Afterward, Milei deleted the post and stated that he never encouraged people to buy LIBRA. However, his actions still caused a scandal. The president was accused of fraud and involvement in a Pump & Dump scheme, leading to threats of impeachment.

According to Nansen, the total losses for nearly 86% of LIBRA traders amounted to $251 million.

The federal case surrounding LIBRA in Argentina is ongoing alongside an investigation in the United States. The analytical firm Bubblemaps linked the launches of LIBRA and First Lady of the United States MELANIA’s meme coin to a single team.

Media reports indicate that the U.S. Justice Department’s investigation, initiated in February, concerns the roles of Milei, Davis, Novelli, Godoy, and Julian Peja from KIP Protocol in promoting the token. KIP Protocol representatives have denied any involvement with the project. On March 13, attorney Gregorio Dalbon requested an international arrest warrant for Davis from Interpol due to his connection with the «problematic» LIBRA.

In October, a class-action lawsuit was filed against the DEX Meteora and its co-founder Benjamin Chow, who are accused of fraud related to two presidential meme coins.

The plaintiffs allege that the authority of Melania Trump and Javier Milei was used to «legitimize fraudulent tokens.» Chow has been labeled the «technical architect» of the scheme, while Davis and his firm Kelsier Ventures are held accountable for the marketing efforts.

Victims claim that the defendants launched and sold at least 15 tokens using a similar scheme. The lawsuit mentions five of these: LIBRA, MELANIA, ENRON, TRUST, and M3M3.

In February, Chow stated that neither he nor Meteora received any tokens or possessed insider information related to the Libra project. That same month, following a public scandal, he exited the project.

Lastly, it’s worth noting that in August, Argentina’s Anti-Corruption Agency cleared President Javier Milei of ethical misconduct allegations related to the promotion of the LIBRA meme token.