Argentine Prosecutors Request the Freezing of Digital Assets Worth Over $100 Million Raised Through the Collapsed Meme Coin Project Libra

Local media outlet Clarin reported that the lead prosecutor, Eduardo Taiano, has initiated the next phase of his investigation into LIBRA, which allegedly generated $110 million in profit

Argentine prosecutors are continuing their investigation into the collapsed meme coin project LIBRA, which local media outlet Clarin reports generated an alleged profit of $110 million for President Javier Milei and other businessmen.

Libra Token Price Today: 0.11

LIBRA/USD Chart: TradingView

The lead prosecutor, Eduardo Taiano, has moved to the next phase of the investigation. In this new phase, Taiano seeks to freeze the illicit gains generated through LIBRA.

Specifically, the prosecutor asked foreign crypto exchanges and law enforcement agents to cooperate in tracking and freezing the assets.

Investors Left in Ruins After LIBRA

For context, LIBRA left many investors in ruins after it plunged tremendously from its peak valuation of $4.5 billion. The token spiked to this peak shortly after Milei promoted the token on social media last month.

In his post, which has since been deleted, Milei claimed the meme coin would boost Argentina’s economy by funding small businesses and startups.

His post quickly drew investors’ attention to the token, driving its valuation to $4.5 billion. However, the surge was short-lived, as LIBRA’s value plummeted almost immediately, leaving many in losses.

However, some early investors cashed out before the plunge. Hayden Davis, CEO of investment company Kelsier, admitted he made $100 million from the project.

Prosecutors Move to Preserve Digital Evidence

Meanwhile, the lead prosecutor is interested in preserving digital evidence linked to the LIBRA project.

Taiano requested the recovery of deleted social media posts promoting LIBRA and the token’s blockchain record since its launch. This initiative aims to identify the beneficiaries of LIBRA’s collapse and their associated blockchain wallets.

The prosecutor wants the funds held in the identified wallets frozen. Notably, prosecutors have already identified some of the associated wallets, with one of them moving $4.5 million to a new address.

Additionally, Taiano is seeking a warrant to obtain LIBRA-related information from offshore exchanges and financial entities to identify potential money laundering activities.

Prosecutors are also compiling a list of witnesses to testify against the main defendants. This stage of the investigation will also assess LIBRA’s regulatory oversight to identify any irregularities with Argentina’s crypto regulation.