Argentina’s federal judiciary has ordered a complete freeze on assets belonging to US promoter Hayden Davis and two suspected intermediaries connected to the collapsed Libra token, deepening the investigation into one of Latin America’s biggest cryptocurrency scandals.
The order, issued by Judge Marcelo Martínez de Giorgi, reportedly targets digital wallets, bank accounts and real estate assets of Davis, Argentine businessman Orlando Rodolfo Merino, and Colombian trader Fabio Camilo Rodríguez Blanco.
Prosecutors said investigators were working to trace the funds, estimated to be about $100 million to $120 million, and that the asset freeze was necessary to prevent the transfer of assets that could represent fraudulent proceeds.
The ruling directs the National Securities Commission (CNV) to notify all crypto asset service providers in the country and ensure that the asset freeze also applies to local crypto platforms.
New developments in the LIBRA token scandal
The lawsuit centers on Libra, the meme coin that gained attention in February after Argentine President Javier Millay briefly promoted Davis as an advisor on blockchain and AI in a social media post. Within hours, the token soared and then crashed, wiping out around $250 million from more than 40,000 retail investors.
Davis is also promoting other meme-based tokens and has been cast as a central figure in the memecoin project. In May, a US judge in New York froze $57 million in USDC stablecoins tied to Davis and his associates at the now-defunct Meteora exchange.
A judge later lifted the freeze and ruled that the money could be returned because Davis and former Meteora CEO Ben Chow had not sought to move the funds.
The lawsuit, led by U.S. and Latin American investors, accuses Davis, Chow and others of setting a “high threshold.” The plaintiffs invoked the RICO Act, alleging that M3M3, another project by Libra and Davis, forms part of an ongoing pattern of organized fraud.
Related: Millais’ party wins midterm elections, but crypto doesn’t celebrate
Political and transnational impact
Although no criminal charges have been filed against President Milay, the Argentine investigation attracted attention because Davis’ cryptocurrency transfers allegedly coincided with high-level political meetings.
Court filings say that when Davis met Millay at Casa Rosada, an intermediary was exchanging tokens for cash, fueling the broader “Cryptogate” controversy that dominated headlines in Argentina.
Nevertheless, Judge Martínez de Giorgi stressed that the asset freeze will last only as long as necessary to secure evidence and preserve the possibility of compensation for investors.
The coordinated actions in Buenos Aires and New York represent a rare example of courts spanning two continents targeting the same blockchain-based scheme.
For regulators, the Libra scandal highlights how cross-border law enforcement and political entanglements are increasingly intertwined with crypto investigations.
Despite being embroiled in scandal, the Argentine party La Libertad Avanza, led by Millay, won the midterm elections, making the president a likely candidate for the October 2027 presidential election.
magazine: Cryptocurrency KOL indicted in Philippine blockchain bill to eradicate corruption: Asia Express