Argentine authorities are intensifying their investigation into the collapse of LIBRA, a memecoin based on the Solana blockchain. The probe is being led by prosecutor Eduardo Taiano, who is working to track transactions and freeze any associated assets.
Reports from local sources indicate that the investigation is focused on identifying individuals who benefited from the token’s rise and fall, with a particular emphasis on uncovering any potential illicit activities such as money laundering. Taiano has requested international access to transaction records, with a focus on the period around Feb. 14 and 15 when LIBRA reached a peak valuation of over $4 billion.
Despite the known total trading volume, the identities of wallet owners involved in the transactions remain anonymous due to the nature of blockchain technology. However, Taiano has managed to identify some addresses and is pushing for asset freezes to prevent any further movement of funds while the investigation is ongoing.
In addition to tracking financial transactions, the probe has also extended to deleted social media posts related to LIBRA, including a tweet from President Javier Milei endorsing the project. Taiano is seeking phone records and visitor logs from the president’s residence to investigate potential connections between government officials and the backers of LIBRA.
The investigation is looking into whether government figures had any involvement in promoting or causing the collapse of LIBRA, as well as whether any individuals with privileged information misled investors. The goal is to uncover the truth behind the memecoin’s downfall and hold accountable those who may have been responsible for any misconduct.
LIBRA rose to prominence after President Milei publicly supported the project, bringing attention to its key supporters such as Hayden Davis’ Kelsier Ventures. However, the project quickly fell apart amidst allegations of insider trading and market manipulation. On-chain data suggests that insiders withdrew around $107 million before the token’s value plummeted.
According to blockchain analytics firm Nansen, 86% of traders suffered losses totaling $251 million, while a smaller group managed to profit by $180 million. President Milei later retracted his support, claiming he had no prior knowledge of the project’s details and seeking to distance himself from the controversy.
The scandal surrounding LIBRA has caused significant financial damage and sparked outrage among the opposition, who have called for Milei’s removal from office. The investigation spearheaded by prosecutor Taiano aims to shed light on the events leading to the memecoin’s collapse and hold accountable those responsible for any wrongdoing.
