LIBRA Fallout: Blockchain Evidence Triggers Legal Blow to Argentina’s Creditors and Fuels Presidential Crypto Scandal
- Judge criticizes hedge funds for speculative investigation into Solana-based LIBRA, labeling the attempt a “fishing expedition” lacking merit.
- LIBRA scandal deepens Milei’s crypto controversy as investigators explore private control over onchain assets tied to public debt claims.
U.S. federal judge Jennifer Rochon denied a request to seize LIBRA-related cryptocurrency assets, ruling investors failed to prove the tokens belonged to the Argentine government. The claim sought to apply proceeds toward a 1.5 billion dollar judgment owed by Argentina after bondholders won a 2023 ruling in London. Rochon found evidence pointed to private individuals, including President Javier Milei, his sister Karina Milei, and promoter Hayden Mark Davis, as possible controllers of the funds.
Four investment firms — Palladian Partners, HBK Master Fund, Hirsh Group, and Virtual Emerald International Limited — led the seizure effort. The firms hold GDP-linked bonds that grant payment if Argentina’s economy surpasses specified thresholds. After the 2001 sovereign default, the creditors pursued remedies abroad to collect on the London judgment.
Court filings revealed the funds sought documentation from Meteora, the Solana platform that issued LIBRA, and requested testimony from several insiders. Rochon criticized the approach as a “fishing expedition” and said the plaintiffs lacked credible proof of state ownership. The ruling leaves open other legal paths, including a class action by retail investors alleging losses of about 251 million dollars tied to LIBRA.
Legal analysts note the decision narrows options for creditors attempting to trace crypto proceeds to sovereign assets and illustrates the difficulties in proving state control over digital tokens. Meanwhile, scrutiny of Javier Milei’s role in promoting LIBRA is expected to intensify as civil and regulatory investigations move forward. Creditors may appeal the ruling, while future discovery could modify the factual record before a final judgment.
The denied motion complicates creditor recovery strategies that expected crypto holdings to provide an accessible source of repayment. International enforcement agencies will likely reassess methods for tracking onchain flows and verifying ownership records, as courts increasingly require verifiable links between blockchain accounts and public entities.
$Libra Case Deepens: Transfers From Davis Reach Advisors of Javier Milei, Argentine Congress Extends Investigation
The Argentine congressional commission investigating the $Libra cryptocurrency fraud has uncovered new financial connections linking President Javier Milei’s advisors to funds traced back to Hayden Mark Davis, the U.S. promoter of the token. The findings go beyond the ongoing federal judicial process and point toward an organized scheme to convert digital assets into cash.
According to documents obtained through the commission’s requests, Mauricio Gaspar Novelli and Manuel Terrones Godoy, both close to the president, received funds transferred by Davis. Investigators believe they used a trusted financial intermediary to exchange crypto dollars into physical currency. Novelli allegedly opened and emptied safety deposit boxes at Banco Galicia, while his sister, with no formal employment, moved several thousand dollars.
The case file also includes records showing that Novelli and Terrones Godoy organized the 2024 Tech Forum, an event closed by Milei, with the Davis family seated in the front row. Novelli holds an Italian passport, and Terrones Godoy is a Spanish citizen with residence in Mexico, prompting the plaintiff led by Martín Romeo to request their immediate detention.
Blockchain expert Fernando Molina traced Davis’s digital wallet, identifying payments exceeding five million dollars to a U.S. influencer who reported being defrauded, as well as transactions that might correspond to alleged bribes connected to the Libra scandal.
The investigation in Buenos Aires is under Judge Martínez de Georgi and Prosecutor Eduardo Taiano, though the case has passed through multiple jurisdictions. Despite access to international wallet data for months, the Anti-Corruption Office closed its inquiry without charges against Milei or his sister Karina Elizabeth Milei.
Meanwhile, Judge Jennifer Rochon of New York continues tracking over $100 million in crypto assets linked to Davis, Milei, and his sister. The commission has now formally requested Milei’s testimony as the case expands across Argentina, the United States, and the United Kingdom.
]]>You May Also Like
Crucial Fed Rate Cut: October Probability Surges to 94%
Jett Nisay, endorser of Marcos impeach complaint, is a public works contractor
