The LIBRA scandal took a new turn as Argentina’s Chief Prosecutor Eduardo Taiano stepped in. Cracking the whip, Taiano ordered the freezing of approximately $100 million in digital assets connected to the sale of $LIBRA tokens.
The meme coin fiasco, involving Argentine President Javier Milei, shot up in price after he endorsed it publicly. Milei also retweeted a tutorial on how to buy the Solana-based token. This promotion sent the price soaring to $4.56 billion before plummeting to $257 million, leading to investor losses of roughly $250 million.
The case has been dubbed Cryptogate with The Economist calling it the “first big scandal” of Milei’s presidency.
Milei continued to remain defiant, in the face of fraud charges for his involvement in the token’s promotion. Argentine lawyers has raised serious concerns about its legitimacy and the potential impact on the national stock market.
Amidst growing clamour against Milei’s actions, Argentina’s Chief Prosecutor Taiano has now requested detailed transaction records related to the $LIBRA coin project and the deleted social media posts. This is seen as attempts to recover key evidence as Milei and his associates deleted the posts.
LIBRA Creator’s Damning Messages Expose Milei Family Payments
Apart from that, Hayden Davies, the creator of the meme coin, is also under scrutiny for his role in the incident. On-chain sleuths exposed messages between Davies and an anonymous businessman that revealed money was paid to President Milei’s sister in exchange for political favors.
As reported by TronWeekly earlier, the leaked message showed Davies asking the businessman: “SEND $$ to MILEI’S SISTER and he will sign and DO WHAT I WANT.” Such revelations have sparked impeachment discussions as well as bribery accusations and political manipulation within the crypto sector.
While the nation’s financial watchdog, the National Securities Commission (CNV), recently decided against intervening in the LIBRA case, authorities are tightening oversight as concerns over crypto-related financial activities grow. This move signals increased scrutiny on digital assets in Argentina.
