- Argentine judge probes Milei over LIBRA crypto fraud, freezes assets to investigate market manipulation, money laundering.
- Security footage shows Novelli’s family entering bank with empty bags, exiting with heavy ones; raids reveal empty deposit boxes.
Argentine federal judge María Servini has escalated an investigation into alleged fraud linked to the cryptocurrency LIBRA, following its promotion by President Javier Milei earlier this year.
The probe centers on potential financial crimes, including market manipulation and money laundering, after LIBRA’s value spiked and collapsed within hours of Milei’s public endorsement.
Servini formally requested the Central Bank of Argentina (BCRA) to disclose financial records tied to Milei, his sister Karina Milei (head of the General Secretariat of the Presidency), and three businessmen: Mauricio Novelli, Sergio Morales, and Manuel Terrones Godoy. The court seeks to analyze changes in their assets since 2023, suspecting illicit gains from LIBRA’s orchestrated price surge.
Novelli, described as having direct ties to Milei, is a focal point. Security footage from February 17 shows Novelli’s mother and sister entering a Banco Galicia branch in Buenos Aires with empty bags and leaving with visibly weighted ones. Subsequent raids on their safety deposit boxes found them empty, prompting investigators to allege possible asset concealment.
Servini ordered a 90-day freeze on the accused parties’ assets to prevent disposal of funds potentially linked to the scheme. A separate “prohibition of asset transfers” bars them from altering their financial holdings during the investigation. Federal prosecutors argue these steps are critical to preserving evidence amid suspicions of centralized token distribution and market manipulation by LIBRA’s founders.
The scandal has ignited political tensions, with opposition lawmakers demanding a congressional commission to examine potential abuses of power. Formal accusations include fraud, bribery, and misuse of authority, intensifying scrutiny on Milei’s administration.
The case underscores vulnerabilities in Argentina’s cryptocurrency oversight, reigniting calls for stricter regulations to prevent political figures from influencing digital asset markets. LIBRA’s rapid rise and fall exemplify risks associated with unchecked promotional campaigns by high-profile officials.
Argentina, grappling with economic instability, has seen cryptocurrencies gain traction as alternatives to the volatile peso. However, the LIBRA case highlights how regulatory gaps can enable exploitation.
