Argentine authorities are ramping up their probe into the collapse of LIBRA, a Solana-based memecoin, with prosecutor Eduardo Taiano main efforts to trace transactions and freeze related property.
In line with native studies, the investigation goals to determine people who profited from the token’s rise and fall and decide whether or not any illicit actions, comparable to cash laundering, occurred.
Taiano has requested worldwide entry to transaction information, primarily specializing in Feb. 14 and 15, when LIBRA reached its peak valuation of greater than $4 billion.
Whereas the overall buying and selling quantity is understood, the anonymity of blockchain transactions has saved the pockets homeowners’ identities hid. Nonetheless, the prosecutor has recognized some addresses and is pushing for asset freezes to stop fund motion through the ongoing investigation.
In the meantime, the inquiry additionally extends to deleted social media posts, together with a tweet from President Javier Milei that endorsed the mission. Taiano seeks telephone information and customer logs from the president’s residence to look at potential connections between officers and LIBRA’s backers.
The investigation additionally goals to uncover whether or not authorities figures performed a job in LIBRA’s promotion or collapse and whether or not these with privileged data misled buyers.
LIBRA’s downfall
LIBRA gained prominence final month when President Milei publicly endorsed it, drawing consideration to its key backers, together with Hayden Davis’ Kelsier Ventures.
Nonetheless, the mission rapidly unraveled amid allegations of insider buying and selling and market manipulation. On-chain knowledge means that insiders withdrew roughly $107 million earlier than the token crashed.
Blockchain analytics agency Nansen additional revealed that 86% of merchants suffered collective losses of $251 million, whereas a smaller group secured $180 million in earnings.
Milei later deleted his social media put up, claiming he had no prior information of LIBRA’s particulars and sought to distance himself from the controversy. Nonetheless, by that point, vital monetary injury had already been inflicted.
The opposition has condemned the scandal, branding it a nationwide embarrassment and calling for Milei’s removing from workplace.
