USDArgentine Judge Orders Nationwide Asset Freeze in $120M LIBRA Memecoin Scandal Tied to U.S. Promoter
Federal court move targets wallets, real estate, and bank accounts linked to the failed token’s promoters
TL;DR
- Judge Marcelo Giorgi freezes assets linked to the LIBRA memecoin case, estimated investor losses reach up to $120 million.
- U.S. promoter Hayden Davis and two intermediaries face scrutiny for alleged crypto-to-fiat transfers after high-profile political ties emerged.
- The ruling compels all Argentine Virtual Asset Service Providers to block related accounts as prosecutors trace large-scale crypto flows.
Federal Judge Marcelo Giorgi has ordered an immediate and indefinite freeze on all assets connected to the LIBRA memecoin investigation, marking a decisive escalation in Argentina’s ongoing probe into one of the country’s largest crypto scandals. The order, issued on November 11 2025, targets U.S. promoter Hayden Davis and two intermediaries — Argentine Orlando Rodolfo Mellino and Colombian Favio Camilo Rodríguez Blanco — who prosecutors claim helped funnel investor funds through a web of wallets, bank accounts, and real-estate holdings. The freeze applies to every known financial and digital asset associated with the group, effectively locking down movement across domestic institutions and trading platforms.
The decision followed a detailed request by prosecutor Eduardo Taino, supported by technical reports from the Secretariat for Financial Investigation & Illicit Asset Recovery and the General Directorate for Asset Recovery and Forfeiture. Investigators Maria Bergalli and Maria Chena outlined that the measure was warranted due to “danger in delay” — the risk that millions could vanish if the accused moved funds before trial. Official estimates place investor losses between $100 million and $120 million, with previous independent tallies suggesting more than 40,000 victims and total damages of around $250 million since the token’s collapse earlier this year.
The LIBRA token, promoted earlier in 2025 and briefly championed by President Javier Milei, soared during its debut before imploding and wiping out much of its coin market cap. Analysts tracking the crypto price index noted erratic spikes and abnormal wallet concentrations prior to the crash, with early insiders exiting while retail holders absorbed the losses. Prosecutors now view these patterns as evidence of coordinated extraction rather than market volatility. Among the more striking details in the file is a $507,500 transfer made via Bitget just 42 minutes after a public selfie of Davis and Milei circulated online, which officials suspect could be linked to indirect payments to political associates. A leaked message attributed to Davis captured the arrogance behind the scheme: “I send money to his sister and he signs what I say and does what I want. Crazy.”
Under Giorgi’s ruling, Argentina’s securities watchdog (CNV) must alert all Virtual Asset Service Providers to enforce the freeze and block related wallets, a step intended to preserve remaining value on the national ledger and across exchanges that track the broader crypto price movements. The court also extended the order to real-estate registries and local banks to halt any property transfers or withdrawals tied to the accused.
The court’s language stressed that the criteria for intervention — plausible fraud, immediate risk, and evidentiary necessity — were fully satisfied. While the freeze will last only as long as “strictly necessary,” prosecutors view it as a key measure to recover stolen funds and trace cross-border crypto flows that have distorted Argentina’s crypto price index and drawn attention to governance lapses. Investigators previously reported that U.S. courts had already frozen roughly $57 million in USDC linked to the same promoter, underscoring the global reach of the case.
The scandal has cast a long shadow over Argentina’s regulatory credibility and the perception of its fast-growing digital-asset economy. As the LIBRA saga unfolds, the episode stands as a stark reminder of how speculative enthusiasm and political optics can collide to erode trust in a nation’s coin market cap — even amid rising adoption of blockchain technology across Latin America.
This article has been refined and enhanced by ChatGPT.
