Prosecutors obtained the freeze to prevent asset transfers while investigators trace an estimated $100 million to $120 million money trail.
Libra Toekn News
Argentina's federal judiciary has frozen assets belonging to U.S. promoter Hayden Davis and two alleged intermediaries linked to the collapsed Libra token. Judge Marcelo Martínez de Giorgi's order covers digital wallets, bank accounts, and real estate owned by Davis, Argentine operator Orlando Rodolfo Mellino, and Colombian trader Favio Camilo Rodríguez Blanco.
Prosecutors obtained the freeze to prevent asset transfers while investigators trace an estimated $100 million to $120 million money trail. The ruling directs Argentina's National Securities Commission to notify all Virtual Asset Service Providers, extending the freeze across local crypto platforms.
Libra surged in February after Argentine President Javier Milei briefly promoted Davis on social media as a blockchain and AI adviser. The token crashed within hours, eliminating approximately $250 million in value from over 40,000 retail investors.
Davis promoted multiple meme-based tokens before emerging as the central figure in the alleged scheme. A U.S. judge froze $57 million in USDC stablecoins tied to Davis and his associates at the defunct Meteora exchange in May. The judge later lifted restrictions after determining Davis and former Meteora CEO Ben Chow had not attempted moving the funds.
American and Latin American investors filed suit accusing Davis, Chow, and others of orchestrating a rug pull. The complaint invokes the RICO Act, characterizing Libra and M3M3 as components of organized fraud.
Argentine authorities have not filed criminal charges against Milei, though investigators noted Davis's crypto transfers allegedly occurred during high-level political meetings. Court documents describe intermediaries converting tokens to cash when Davis met Milei at Casa Rosada, driving the Cryptogate controversy in Argentine media.
Judge Martínez de Giorgi specified the freeze remains active only while securing evidence and protecting potential investor restitution. The parallel proceedings in Buenos Aires and New York represent unusual coordination between courts on separate continents targeting identical blockchain-based assets.
The scandal demonstrates how cross-border enforcement intersects with political complications in cryptocurrency investigations. Milei's La Libertad Avanza party won midterm elections despite the controversy, strengthening his position ahead of the October 2027 presidential race.
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