Argentine Court Freezes Crypto Assets in $LIBRA Token Probe

The judicial mandate follows a report from the Cybercrime Technical Department of the Argentine Federal Police, which reconstructed the movement of funds associated with the project's failed February 2025 launch. Authorities are now demanding KYC records, IP addresses, and transaction histories from Binance, Bybit, OKX, and Bitfinex to unmask the individuals behind the digital trail.

Investigators focused on a specific wallet, identified as “61yk,” which had previously been subject to a freeze by the U.S. District Court for the Southern District of New York. After that restriction was lifted, the funds were allegedly redistributed using a “digital smurfing” strategy—breaking large balances into smaller, harder-to-track transfers. One significant movement on May 10 saw 498,539 USDT moved across networks, eventually splitting into 17 separate transactions across the mentioned exchanges.

The project, which gained notoriety after President Javier Milei promoted it on social media, saw its value collapse shortly after inception. While token creator Hayden Davis previously claimed control over $110 million, current judicial scrutiny aims to track the remaining $8.2 million. Some of these assets are reportedly managed through a trust intended for Argentine business grants, though authorities remain skeptical of the fund's legitimacy given the obfuscation tactics employed by the holders.