Argentina's LIBRA Controversy Exposes Connections Between Cryptocurrency and Politics Amid Worldwide Asset Freezes

Bitget App

Trade smarter

Bitget

News

Markets

Argentina's LIBRA Controversy Exposes Connections Between Cryptocurrency and Politics Amid Worldwide Asset Freezes

Bitget-RWA2025/11/12 04:22

By:Bitget-RWA

- Argentina's federal court froze assets of LIBRA memecoin suspects, including U.S. founder Hayden Davis, over a $100M-$120M alleged pump-and-dump scheme linked to President Milei's endorsement. - Prosecutors allege Davis used Milei's influence to inflate the token's value, with $90M traced through exchanges like Bitget, including a $507,500 transfer 42 minutes after a presidential selfie. - The case highlights crypto-political ties, with texts suggesting Davis claimed control over Milei's decisions and pa

An Argentine federal court has indefinitely frozen the assets of several people associated with the LIBRA

memecoin

controversy, which has become politically charged after links to President Javier Milei surfaced. Judge Marcelo Martínez de Giorgi issued the order, targeting U.S. businessman Hayden Davis, who founded the project, as well as Colombian national Favio Camilo Rodríguez Blanco and Argentine citizen Orlando Rodolfo Mellino. Prosecutors claim the three orchestrated a pump-and-dump operation worth between $100 million and $120 million, with Davis allegedly using Milei’s support to boost the token’s price, according to

Yahoo Finance

The court’s “prohibición de innovación” ruling blocks any sale or transfer of assets, including digital currencies, to secure evidence during the ongoing investigation, as reported by

CryptoTimes

. Federal prosecutor Eduardo Taiano, who initiated the freeze, warned of possible asset concealment and stressed the importance of tracking funds from questionable transactions. One such transaction was a $507,500 transfer Davis made through Bitget just 42 minutes after sharing a selfie with Milei on January 30, where Davis was promoted as an advisor in blockchain and AI, according to

Coinpedia

Argentina's LIBRA Controversy Exposes Connections Between Cryptocurrency and Politics Amid Worldwide Asset Freezes image 0

Blockchain analytics firms TRM Labs and Chainalysis traced $90 million in transactions connected to LIBRA’s downfall, with funds routed through exchanges such as Bitget and Gate.io, according to

CryptoTimes

The investigation has sparked debate due to its political ramifications. Prosecutors allege that intermediaries like Rodríguez Blanco and Mellino converted crypto assets to fiat currency to disguise payments that may be linked to Milei’s associates. Text messages reportedly show Davis boasting about his sway over the president, saying, "I send money to his sister and he signs what I say," as reported by

CryptoTimes

. Although Argentina’s anti-corruption office previously found Milei not guilty of ethical breaches, public confidence in him has declined, with approval ratings falling to 41.6% in March 2025, according to

CryptoNews

The controversy has also reached global markets. In the U.S., a class-action suit accuses Davis and Meteora Trading of operating a “fraud factory” under the RICO Act, alleging coordinated international efforts to deceive investors, as reported by

CryptoTimes

. At the same time, Argentina’s National Securities Commission (CNV) has ordered crypto platforms to enforce the asset freeze, expanding regulatory oversight to all virtual asset service providers, as reported by

Yahoo Finance

The LIBRA investigation highlights increasing international regulatory attention on the intersection of cryptocurrency and politics. For example, Brazil has recently introduced tighter crypto regulations, requiring digital asset companies to obtain approval from the Central Bank by 2026, as reported by

TradingView

. In the United States, bipartisan Senate proposals seek to transfer crypto oversight from the SEC to the CFTC, focusing on commodity-based regulation, as reported by

Coinotag

As the Argentine probe continues, its outcome could shape how countries handle political influence in the crypto sector. For now, the freeze on Davis’s assets—and the looming threat of further penalties—marks a significant step in Argentina’s efforts to separate financial wrongdoing from high-profile digital asset endorsements, as reported by

Yahoo Finance

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- JPMorgan launches JPM Coin, a 24/7 USD deposit token for institutional clients via Coinbase's Base blockchain, enabling real-time settlements beyond banking hours. - The token, piloted with Mastercard and B2C2, aims to streamline cross-border payments and will expand to non-institutional clients and euro-denominated JPME pending approvals. - JPM Coin serves as collateral on Coinbase and differentiates from stablecoins by representing tokenized bank deposits with potential yield-bearing features. - The in

Bitget-RWA•2025/11/12 05:46

Bitcoin Updates: Major Whale Moves $10 Million—Is This a Market Dump or a Tactical Shift in Holdings?

- A Bitcoin whale withdrew 100 BTC ($10.32M) from Binance, signaling renewed activity from long-term holders amid broader "OG" whale selling trends. - Over 1,000 BTC/hour has been dumped by seven-year+ holders since November 2024, with $100M+ sell-offs highlighted by Capriole's Edwards as "persistent distribution." - Technical analysis forecasts a $89,600 price drop via bear pennant patterns, compounding risks as Bitcoin trades 18.7% below its $126K all-time high. - Whale activity remains ambiguous: withdr

Bitget-RWA•2025/11/12 05:46

Bitcoin Updates: Major Whale Moves $10 Million—Is This a Market Dump or a Tactical Shift in Holdings?

DOGE Rises 0.03% as Dogwood Registers 100 Participants in Halneuron Study

- Dogwood Therapeutics (DWTX) enrolled 100 patients in its HALT-CINP Phase 2b trial for Halneuron®, targeting chemotherapy-induced neuropathic pain. - The randomized trial evaluates Halneuron®'s efficacy vs. placebo through 14-day subcutaneous dosing and 28-day monitoring at 25 U.S. sites. - DOGE rose 0.03% in 24 hours to $0.17191 but fell 45.53% year-to-date amid broader market volatility. - The milestone advances interim analysis plans for December 2025, aiming to demonstrate statistically significant pa

Bitget-RWA•2025/11/12 05:46

Bitcoin News Update: Bitcoin Faces $103k Impasse as Bearish Signals Clash with Bullish Expectations

- Bitcoin fell near $103,000 on Nov. 8, 2025, amid Fed rate-cut uncertainty, trading in a $99,376–$103,956 range as technical indicators showed bearish consolidation. - Analysts highlighted key support at $98,900 and resistance at $104,000, with bullish sentiment driven by Cathie Wood’s $1M price target and Eric Trump’s “world-class asset” endorsement. - Strategy expanded its STRE offering to €620M to fund BTC purchases, holding 3.05% of circulating supply despite Bitcoin’s dip below $100,000. - Market cau

Bitget-RWA•2025/11/12 05:10