Argentina’s Chief Prosecutor Eduardo Taiano has intervened in the LIBRA scandal, freezing $100 million in digital assets linked to the token’s sale. President Javier Milei’s promotion of the token resulted in significant investor losses, raising concerns over its legitimacy. Investigations reveal potential political favors involving Milei’s family. The financial watchdog is tightening scrutiny of the crypto sector amid these developments.
The LIBRA scandal has taken a significant turn with Argentina’s Chief Prosecutor, Eduardo Taiano, taking action. He has mandated the freezing of nearly $100 million in digital assets tied to the sale of $LIBRA tokens, reflecting heightened scrutiny over this case.
This incident gained attention after Argentine President Javier Milei endorsed the meme coin, which subsequently surged in value. Following his endorsement and a tutorial retweet, the price ballooned to $4.56 billion, only to decline sharply to $257 million, resulting in approximately $250 million in losses for investors.
Dubbed Cryptogate, the scandal is referred to by The Economist as the first major controversy of Milei’s presidency. Despite facing fraud allegations, Milei maintains a defiant stance regarding his involvement with the token’s promotion, amidst growing legal concerns regarding its validity and repercussions on the national stock market.
In response to the public outcry, Prosecutor Taiano has requested comprehensive transaction histories and the retrieval of deleted social media posts related to the $LIBRA coin project, which is crucial for collecting evidence as Milei and his associates have removed related content.
Further complicating the situation, Hayden Davies, the creator of the meme coin, is also under investigation for his involvement. On-chain investigators have uncovered correspondence indicating payments were made to President Milei’s sister in exchange for political favors, intensifying the scandal’s implications.
The leaked messages illustrated Davies instructing a businessman, “SEND $$ to MILEI’S SISTER and he will sign and DO WHAT I WANT,” which has fueled discussions of impeachment and raised allegations of bribery and manipulation in the crypto sector. Meanwhile, Argentina’s financial supervisory body, the National Securities Commission (CNV), has opted not to take action in the LIBRA case but is enhancing scrutiny over crypto-related activities as concerns heighten.
In summary, the LIBRA scandal has drawn governmental scrutiny, with Prosecutor Taiano freezing $100 million in digital assets and requesting transaction records. President Milei faces significant allegations linked to his endorsement of the $LIBRA token, and revelations involving financial transactions between coin creator Hayden Davies and Milei’s family have escalated the situation. The financial watchdog’s increased oversight further underscores the urgency of addressing crypto-related governance in Argentina.
Original Source: www.tronweekly.com
