Argentina freezes 25 crypto accounts in LIBRA token investigation, orders exchange KYC

An Argentine judge has frozen 25 crypto accounts and ordered six exchanges, including Binance and Bybit, to provide full user data in an investigation into the LIBRA token. The probe follows the token's 2025 collapse, which caused over $100 million in losses for 40,000 investors shortly after President Javier Milei promoted it on social media. The move aims to trace funds from an alleged money laundering scheme.

Frozen cryptocurrency accounts

• ▪An Argentine federal judge has frozen 25 crypto accounts linked to the country's investigation into the LIBRA token.
• ▪The freeze order was issued by Judge Marcelo Martínez De Giorgi at the request of prosecutor Eduardo Taiano.
• ▪The frozen accounts are distributed across ten on Binance, eight on Bybit, two on OKX, two on CoinEx, two on Bitfinex, and one on FixedFloat.
• ▪The judge ruled that the accounts will remain frozen to preserve assets for a potential confiscation.

Exchange KYC data requests

• ▪Requested data includes Know Your Customer (KYC) records, IP connection logs, transaction histories, and linked bank accounts.
• ▪Six exchanges—Binance, Bybit, OKX, CoinEx, FixedFloat, and Bitfinex—were ordered to hand over complete client files.
• ▪Argentina’s Federal Police cybercrime unit will process the requests, with Interpol providing assistance when needed.

LIBRA token collapse

• ▪The LIBRA token collapsed in February 2025, with its market capitalization falling 89% within three hours of a presidential promotion.
• ▪The token's price surged from approximately $0.01 to nearly $5 before collapsing within hours.
• ▪A small cluster of wallets allegedly withdrew around $100 million during the token's price surge.
• ▪Investor losses are estimated to be between $100 million and $250 million, affecting more than 40,000 buyers.

Presidential endorsement controversy

• ▪Argentine President Javier Milei promoted the Solana-based LIBRA token on his X account on February 14, 2025.
• ▪Leaked files allegedly indicated a $5 million contract for the presidential promotion, a claim President Milei denies.
• ▪President Milei has since deleted the promotional post and stated he had no connection to the project.

Money laundering investigation

• ▪The police report traced funds from "Team Libra" wallets through platforms including Jup.ag, FixedFloat, and deBridge Finance.
• ▪A Federal Police report described a "digital smurfing" strategy where funds were fragmented into small daily amounts across multiple wallets.
• ▪The investigation is probing a money laundering scheme allegedly orchestrated by Mauricio Novelli, Manuel Terrones Godoy, and US businessman Hayden Davis.

Victim plaintiff removal

• ▪In early July 2026, Judge Marcelo Martínez De Giorgi removed all five investor plaintiffs from the case at the defense's request.
• ▪Opposition lawmakers linked the ruling to President Milei's recent nomination of the judge's wife to the federal bench.
• ▪The removal leaves prosecutor Eduardo Taiano as the sole party advancing the case against the alleged orchestrators.

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