Argentine Court Freezes 25 Crypto Wallets in $LIBRA Case

Argentine Court Freezes 25 Crypto Wallets in $LIBRA Investigation

An Argentine judge has ordered the identification and freezing of assets associated with 25 cryptocurrency wallets as part of an ongoing investigation into the $LIBRA token. This decision follows the tracing of nearly 498,539 USDT through various wallets, with transactions linked to popular exchanges including Binance, Bybit, OKX, and Bitfinex.

Details of the Investigation

Federal Judge Marcelo Martínez de Giorgi issued the order based on a report from the Cybercrime Technical Department of the Argentine Federal Police. The report detailed the movement of crypto assets related to the $LIBRA case, particularly investigating transactions that resumed in May and involved approximately $8.2 million.

Identity and Asset Freezing Measures

The order mandates authorities to obtain identities of wallet holders, along with know-your-customer (KYC) records, IP addresses, transaction histories, and other relevant information. The measure particularly targets wallets believed to have managed funds linked to the failed launch of the $LIBRA token in February 2025.

Link to $LIBRA Team

According to reports, eight wallets identified as part of the ‘Libra Team’ were involved in the token’s development and subsequent withdrawal of investor funds following a promotional effort by Argentine President Javier Milei. The token experienced a brief surge in value before its price plummeted.

Documents reviewed reveal that around $110 million was reported to still be under the control of the token’s creator, Hayden Davis, after the launch. Notably, four of the eight Libra Team wallets pooled funds into another wallet referred to as “61yk,” which had been under a prior freezing order from a U.S. District Court.

Tracing Funds Through Exchanges

Investigators reported significant activity with the “61yk” wallet, which was allegedly involved in a redistribution of funds following the lifting of the freezing order. Authorities observed a substantial transfer on May 10, with the same amount moved through a cross-chain interoperability protocol and subsequently split into 17 separate transactions.

The Federal Police concluded that at least 10 of these transactions passed through Binance, further indicating that the exchanges involved could aid in identifying related individuals, despite some platforms not retaining extensive KYC data.

Future Proposals and Developments

As the investigation continues, recent information suggests that the remaining funds may be managed through a trust founded by Davis, which aims to allocate grants to Argentine companies in an attempt to revive the $LIBRA project by the year’s end. Reports indicate that the trust has already received 71 grant applications.