A court has frozen the assets of those involved in the Libra coin fraud case.
Date: 2025-11-12 Author: Henry Casey Categories: BUSINESS
An Argentine court, presided over by Judge Marcelo Giorgi, has ordered the assets of several individuals involved in the scheme, which defrauded investors of tens of millions of dollars. According to investigators, this is a typical "pump and dump" scheme: the token creators inflated interest in the project with grandiose promises and then drained the liquidity, leaving investors with worthless tokens.
The main suspect is Hayden Davis, one of the founders and chief promoter of Libra, who actively promoted the project with the support of Argentine President Javier Miley. According to investigators, his partners, Rodriguez and Mellino, were involved in operational activities: accepting funds from investors, converting fiat currencies into cryptocurrency and vice versa, and participating in transfers through their own crypto wallets.
The investigation revealed that one of the participants, presumably Rodriguez, controlled cash deposited in a safe deposit box at Banco Galicia. After the Libra price collapsed on February 17, the family of Argentine businessman and trader Mauricio Novelli contacted the bank, seeking to recover the funds.
Novelli is named in a separate case pending in Argentine and US courts. He became known as the organizer of the Tech Forum conference, held in October 2024, where Libra was presented as the "people's memecoin." Davis was also present at this event and was subsequently invited by Novelli to a meeting with President Miley on January 30 at the Casa Rosada. At the meeting, ideas for using blockchain to "monetize the president's image" were discussed.
According to prosecutors, the losses from the fraudulent actions of Libra's developers could reach $120 million. Investigators believe the frozen assets of the accused will partially compensate investors for their losses.
Meanwhile, the Argentine Congress has summoned Cardano founder Charles Hoskinson to a hearing to obtain an expert opinion on the causes of Libra's collapse and the general risks associated with memetic cryptocurrencies. Argentine authorities intend to use this case as an example of the need for stronger oversight of crypto projects, especially those promoted under patriotic slogans and promises of public benefit.
Thus, the high-profile Libra case has become one of the largest investigations in the Argentine cryptosphere, demonstrating how political support and marketing hype can conceal financial fraud.
