This is how Prosecutor Eduardo Taiano’s investigation into $LIBRA, the scandal implicating Milei, is progressing

Prosecutor Eduardo Taiano, leading the investigation into the alleged fraud behind the rise and fall of $LIBRA—the token promoted on X by President Javier Milei—continues with new proceedings nearly three weeks after the scandal shook the Argentine government and the crypto world.

According to international media, Taiano has requested the freezing of up to $110 million in assets linked to the alleged fraud, along with a detailed report on all $LIBRA transactions since its launch.

Tracking transactions and key figures

As part of the investigation, the prosecution is reviewing call records and other communications to identify possible connections between local businessmen Mauricio Novelli, Manuel Terrones Godoy, and Sergio Daniel Morales, and foreign figures Hayden Mark Davies, CEO of Kelsier Ventures, and Julián Peh, director of KIP Protocol, the company behind the digital asset.

To support the investigation, Taiano would seek assistance from the Directorate of Technical Assistance for Criminal Investigation (Datip), a specialized agency of the Public Prosecutor’s Office focused on complex investigations, according to a source close to the case cited by La Nación.

For now, a spokesperson told the same outlet that there have been “no developments” in this phase of the investigation.

Money laundering suspicions

Authorities are tracking a recent movement of $4.5 million to new digital addresses, which could indicate an attempt to hide funds. According to the specialized account Kobeissi Letter, at least eight wallets linked to the $LIBRA team withdrew $107 million before the token collapsed.

Part of the tracked funds was used to purchase the cryptocurrency POPE, reinforcing suspicions of money laundering. Meanwhile, Prosecutor Taiano has requested the House of Representatives’ Communications Commission to provide a copy of a meeting with experts on crypto scams.

Karina Milei under scrutiny

On Wednesday, lawmakers from the Civic Coalition (CC), Mónica Frade and Maximiliano Ferraro, filed a new complaint in federal court targeting Karina Milei, the Argentine president’s sister.

According to the complaint, in her role as Presidential Secretary, she controls the president’s agenda and was allegedly involved in bribery requests. The accusation arises from leaked private chats in which trader Hayden Davis implicates her in a potential fraud related to the $LIBRA token.

The case will be investigated by Judge Marcelo Martínez de Giorgi, with Prosecutor Carlos Rívolo in charge.

How did it all begin?

On February 14, 2025, at 5:01 p.m. ET, Argentine President Javier Milei posted a message on X (formerly Twitter) promoting the cryptocurrency $LIBRA, describing it as a project aimed at fostering Argentina’s economic growth by financing small businesses and local startups.

Following this post, $LIBRA’s value surged significantly, reaching a peak of approximately $4,978. However, just hours later, its value plummeted to around $0.99159, sparking suspicions of a possible “pump and dump” scheme, where an asset’s price is artificially inflated, then sold off massively, causing its collapse.

Concerns about Milei’s involvement intensified when photos surfaced on social media showing him with local and foreign businessmen at various events. Notably, his meeting with Hayden Mark Davis, founder of Kelsier Ventures and a promoter of $LIBRA, stood out. Davis claimed that Milei initially endorsed and actively promoted the project but later publicly distanced himself, triggering a panic sell-off and the token’s collapse.

Additionally, it was revealed that $LIBRA’s distribution was highly concentrated, with approximately 80% of the tokens held by a few wallets, allowing a small group to maintain significant control over the cryptocurrency market. This information was not disclosed to the public, leading many investors to buy in without understanding the real risk.

In response to the scandal, Milei deleted his initial post and stated that he had no involvement with the project, claiming ignorance of its details. However, the controversy has damaged his credibility and complicated his efforts to strengthen political alliances ahead of this year’s midterm legislative elections.