Bitget Under Scrutiny as Argentine Judge Freezes LIBRA Memecoin Funds in Major Fraud Case

In a landmark ruling, Argentine federal judge Marcelo Giorgi has ordered the seizure of funds linked to the LIBRA memecoin project, marking the country's largest cryptocurrency fraud case to date. Prosecutors have traced $500,000 in suspicious transfers to President Javier Milei via the Bitget exchange, amid allegations of fraud, bribery, and political misconduct. Judge Giorgi condemned LIBRA as a "hindrance to innovation" in his decision, which also targets U.S. promoter Hayden. The case highlights growing regulatory scrutiny of crypto exchanges like Bitget in high-profile fraud investigations.

Argentine Judge Freezes Funds Linked to LIBRA Memecoin Amid Fraud Allegations

An Argentine federal judge has ordered the seizure of funds tied to the LIBRA memecoin project, marking the country's largest crypto-fraud case. Prosecutors traced $500,000 in transfers to President Javier Milei via Bitget exchange, amid allegations of fraud, bribery, and political misconduct.

Judge Marcelo Giorgi denounced LIBRA as a "hindrance to innovation" in his ruling, which targets U.S. promoter Hayden Davis and associates Orlando Mellino (Argentina) and Favio Rodriguez (Colombia). Federal prosecutor Eduardo Taíno presented evidence suggesting investor losses exceeding $100 million.

The investigation revealed suspicious wallet activity by Davis and collaborators months before LIBRA's collapse. Argentina's National Securities Commission has been mandated to secure assets suspected of originating from the alleged scheme.

Bitcoin's Technical Breakdown Sparks Market Anxiety

Bitcoin's precipitous decline has erased all gains made in 2025, with the cryptocurrency now testing critical technical levels. The breach of the 50-week moving average—a key support level maintained since 2023—has triggered widespread alarm among traders. Market sentiment, as measured by the Fear & Greed Index, has plunged to 10/100, reflecting extreme fear.

The CME gap between $91,900 and $92,500 looms as a potential magnet for price action, while the emergence of a death cross pattern reinforces bearish technical narratives. Analysts note this breakdown mirrors historical periods of prolonged crypto market turbulence, with Bitget's Ryan Lee warning of strengthening downward momentum.

Institutional traders are closely monitoring the CME futures gap, a phenomenon created during weekend price movements when traditional markets are closed. The current technical configuration suggests Bitcoin may be entering a phase of extended consolidation before any meaningful recovery.