Argentina Freezes $110M in Libra Memecoin Scandal

Argentine federal prosecutor Eduardo Taiano is moving to freeze over $110 million in assets linked to the Libra memecoin scandal, a case that has drawn widespread attention due to its alleged ties to President Javier Milei.

The investigation revolves around Libra, a Solana-based memecoin that Milei endorsed on social media in February. His promotion sent the token’s fully diluted market cap soaring to over $2 billion before it crashed, wiping out 90% of its value. Libra now holds an FDV of approximately $100 million, according to DexScreener.

Milei’s Endorsement Under Scrutiny

Local media outlet Clarín reports that Taiano is working to recover deleted social media posts, including Milei’s original endorsement of the project. The prosecutor has also requested phone records and visitor logs from the presidential residence and office, aiming to trace the events leading up to the promotion.

The controversy has ignited a political firestorm in Argentina. Opposition leaders have called for Milei’s impeachment, arguing that his endorsement misled investors and fueled a classic pump-and-dump scheme. However, Milei’s allies claim he had no direct involvement in the creation or management of the token.

On February 14, the president posted on X (formerly Twitter), promoting the Libra project as a means to fund small businesses and startups to help strengthen Argentina’s economy. His post included a link to Libra’s website and its contract address on Solana.

Though he has since deleted the post and denied deeper involvement, the ongoing investigation suggests authorities are not convinced.

Who Is Behind Libra?

One key figure emerging in the probe is Hayden Davis, CEO of Kelsier Ventures, who appears to have played a major role in both the Libra launch and Milei’s endorsement.

In a video posted to X in February, Davis claimed he was an advisor to Milei, working closely with his team. A photo of Davis with the president, originally posted to Milei’s X account in January, has now been deleted—further fueling speculation.

During an interview with YouTube investigator Coffeezilla (Stephen Findeisen), Davis revealed that he personally holds the proceeds from Libra’s collapse, amounting to over $110 million. He admitted to controlling $100 million in stablecoins from the token’s launch, along with an additional $13 million in LP fees, totaling approximately $113 million.

What’s Next?

With the asset freeze request in motion, the Argentine government faces increasing pressure to clarify the president’s involvement. While Milei attempts to distance himself from the scandal, the ongoing investigation could lead to further legal action or political consequences.

The Libra case has also renewed discussions on crypto regulation in Argentina, highlighting the risks of unregulated memecoins and celebrity endorsements in financial markets.

For now, the country watches as the high-profile probe unfolds, with potential repercussions for Milei’s presidency and Argentina’s crypto industry.