Key Takeaways:
- Argentina freezes assets of Hayden Davis and associates in Libra token fraud.
- The case involves $100M–$120M in allegedly misappropriated funds.
- Cross-border legal action highlights growing political and regulatory scrutiny in crypto.
Sweeping Asset Freeze Targets Libra Promoters
Argentina’s federal judiciary has intensified the $250 million Libra token fraud investigation by ordering a comprehensive freeze of assets tied to US promoter Hayden Davis and two alleged intermediaries. Judge Marcelo Martínez de Giorgi’s order affects digital wallets, bank accounts, and real estate holdings of Davis, Argentine operator Orlando Rodolfo Mellino, and Colombian trader Favio Camilo Rodríguez Blanco.
Prosecutors say the move aims to prevent transfers that could conceal fraud proceeds while investigators trace an estimated $100–$120 million in losses. The ruling also directs the National Securities Commission (CNV) to notify local crypto platforms, ensuring the freeze extends across Argentina’s digital asset ecosystem.
Libra Token Collapse Sparks International Scrutiny
The scandal centers on the Libra memecoin, which briefly surged after Argentine President Javier Milei promoted Davis as a blockchain and AI adviser. Within hours, the token crashed, wiping out $250 million from more than 40,000 retail investors.
Also Read: Brazil’s Stablecoin Crackdown: Are Crypto Payments Now Heavily Regulated?
Davis, previously involved in other meme-token projects, has been accused in US and Latin American lawsuits of orchestrating a “rug pull.” In New York, a US judge temporarily froze $57 million in USDC stablecoins tied to Davis and Meteora exchange CEO Ben Chow, although the freeze was later lifted. Investors argue that Libra and Davis’s M3M3 project reflect a coordinated pattern of organized fraud under the RICO Act.
Political and Cross-Border Implications
The case has attracted significant political attention. Court filings suggest intermediaries converted Libra tokens into cash during meetings between Davis and President Milei at Casa Rosada, fueling a broader “Cryptogate” controversy.
Judge Martínez de Giorgi emphasized that the freeze is temporary, designed solely to protect evidence and potential restitution. Coordinated legal action across Buenos Aires and New York marks a rare cross-continental effort to target blockchain-based assets, underscoring the challenges of regulating digital currencies across borders.
Despite the scandal, Milei’s La Libertad Avanza party won the midterm elections, positioning him for the 2027 presidential race. The Libra investigation, however, serves as a stark reminder of the political and regulatory risks surrounding crypto promotions.
