Javier Milei, the Libertarian Presidential Candidate, Is Being Investigated for His Alleged Involvement in the LIBRA Cryptocurrency Scandal

The lead prosecutor investigating Argentine President Javier Milei's alleged involvement in the LIBRA cryptocurrency scandal has requested the freezing of as much as $110 million in assets.

Argentine Federal Prosecutor Eduardo Taiano is seeking to freeze up to $110 million in assets and recover deleted social media posts as part of the investigation into President Javier Milei’s alleged involvement in the LIBRA cryptocurrency scam, local reports said on Monday.

The prosecutor, who is also investigating the alleged fraudulent activity of those involved in the LIBRA token, has requested the recovery of deleted social media posts, including those by Milei promoting the Solana-based memecoin, stated Clarín.

He also requested detailed records of all LIBRA transactions since its launch with the aim of reconstructing financial operations around Feb. 14 to 15, when the memecoin’s trade volume was highest.

Those requests are part of a broader investigation into the LIBRA token, which was launched in December and touted as a way to help small Argentine businesses and startups.

However, the token’s price began to plummet on Feb. 13, and by the time it bottomed out on Feb. 14, it had lost almost 90% of its value.

The rapid crash, which saw LIBRA’s market cap evaporate from highs of $4.5 billion to as low as $500 million, sparked accusations of an insider rug pull, leading to several lawsuits and a federal investigation.

As part of his investigation, Taiano has requested the freezing of identified digital wallets to prevent fund dispersal and drafted international requests to access information from foreign cryptocurrency exchanges, the report added.

Despite Milei deleting his initial endorsement, at least eight wallets identified as insiders linked to the Libra team managed to cash out as much as $107 million before the token crashed, according to data shared by the Kobeissi Letter.

Investigators have already identified a recent movement of $4.5 million from a wallet connected to the scandal to a new address, with some funds used to purchase a memecoin called POPE, potentially as an attempt to launder the funds speculated Clarín.

The prosecutor has requested phone records and visitor logs from the presidential residence and office while creating a list of blockchain experts and people close to the presidential circle who might have relevant information.

Earlier this year, Libertarian Milei faced calls for impeachment after being implicated by the Argentine press in the LIBRA cryptocurrency scam.

The billionaire economist, who is a strong contender in the upcoming 2023 presidential elections, was named in reports as having endorsed the LIBRA token.

However, Milei has adamantly denied any wrongdoing and claims that he is the victim of a political conspiracy.

The Libra token briefly reached a peak market capitalization of $4.5 billion on Feb. 14 before tanking over 90% in less than 12 hours, sparking accusations of an insider rug pull and the consequent lawsuits and federal investigation.

Milei refuted claims that he promoted the memecoin, stating in February that he merely “spread the word.”

The scandal, dubbed locally as “Libragate,” has dented Milei’s popularity and hindered his efforts to strengthen political alliances ahead of congressional midterm elections this year, reported Reuters in late February.