- Argentine judge freezes global assets of three promoters in the alleged Libra token $100M fraud case.
- US courts previously froze $57M, with a class-action lawsuit alleging a coordinated “rug pull” scheme.
An Argentine federal magistrate has issued a global asset freeze concerning the alleged fraudulent activities tied to the Libra token. Judge Marcelo Martínez de Giorgi’s ruling specifically identifies the holdings of three individuals: U.S. promoter Hayden Davis, Argentine operator Orlando Rodolfo Mellino, and Colombian trader Favio Camilo Rodríguez Blanco.
These restricted assets range from digital wallets and standard banking accounts to physical properties. The central objective of this judicial measure involves immobilizing funds thought to be connected to the purported scheme. Financial investigators are tracking monetary movements valued between $100 million and $120 million.
Additionally, the court has formally instructed Argentina’s National Securities Commission (CNV) to contact every registered virtual asset service provider in the country. This implementation expands the freeze to encompass Argentina’s cryptocurrency exchange landscape, widening the containment of potentially affected assets.
The Swift Ascent and Collapse of Libra
The token rose to prominence in February after Argentine President Javier Milei made a social media post that briefly identified Hayden Davis as a blockchain and AI advisor. Despite its brevity, this endorsement produced a sharp reaction in the token’s trading activity.
Libra’s market value climbed quickly, drawing in a influx of capital. This upward trend reversed abruptly with a steep decline that happened over just a few hours. The crash eliminated roughly $250 million in value from more than 40,000 individual investors.
International Legal Proceedings and Claims
A separate proceeding in the United States also involves Hayden Davis. Several months ago, a New York judge authorized a freeze on $57 million in USDC stablecoins connected to Davis and his partners at the failed Meteora exchange. The judge subsequently revoked that freeze, citing the defendants’ lack of movement of the funds and the continued feasibility of investor repayment.
In a related development, a collective lawsuit has been brought forward by investors from the Americas. This legal action charges Davis and Ben Chow, the prior head of Meteora, with carrying out a “rug pull,” a deceptive practice where developers abandon a project and take investors’ money. The claimants are applying the RICO statute, contending that the Libra and M3M3 ventures constitute a consistent method of organized criminal activity.
Political Repercussions in Argentina
The scandal, labeled “Cryptogate” by Argentine media, has generated substantial political consequences. Court documents have revealed that the conversion of tokens into cash occurred at times when Hayden Davis was meeting with President Milei at the presidential palace, the Casa Rosada.
These details have fueled extensive media coverage and public speculation. While President Milei has not faced any criminal charges in the matter, the association has proven damaging.
Judge Martínez de Giorgi has clarified that the asset freeze is a procedural step, intended to remain in effect only as long as needed to secure evidence and guarantee the possibility of returning funds to affected investors.
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