Federal Judge Marcelo Giorgi ordered the freezing of assets connected to the investigation of the LIBRA meme coin, previously promoted by Argentine President Javier Milei. Following the token’s collapse, investors lost between $100 M and $120 M.
The freeze applies to funds belonging to entrepreneur Hayden Davis, head of Kelsier Ventures, as well as two alleged intermediaries – Argentine citizen Orlando Mellino and Colombian national Favio Rodriguez.
According to prosecutors, the measure aims to prevent the withdrawal of funds that may constitute proceeds of fraud. The asset freeze will remain in effect until the investigation concludes and applies to all cryptocurrency exchanges operating in Argentina.
The probe began after prosecutors identified a suspicious $507,500 transfer made through the Bitget exchange. The transaction occurred 42 minutes after Milei posted a photo with Davis, calling him his blockchain and AI advisor.
Investigators view the transfer as a possible indirect payment to government officials.
Argentina’s financial intelligence unit also reported that the funds were converted to fiat through Davis and his intermediaries, with the final recipients concealed. Prosecutors claim Davis sent messages boasting about his influence over the president.
“I send money to his sister, and he does whatever I tell him,” Davis allegedly wrote in one of the messages.
The case materials also mention meetings between Milei and lobbyist Mauricio Novelli, where, months before LIBRA’s launch, they discussed projects related to monetizing the president’s image.
After the token crashed, losing around 90% of its value within hours of launch, new details surfaced. According to investigators, Rodriguez opened a bank vault in Novelli’s name, from which his relatives later withdrew cash.
The LIBRA case runs parallel to another proceeding focusing on Meteora co-founder Benjamin Chow. In a U.S. lawsuit, plaintiffs claim that Javier Milei and former U.S. First Lady Melania Trump were used as instruments to legitimize tokens created to manipulate the market.
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