LIBRA Scandal Deepens: Judge Freezes Assets of Key Players as Milei’s Crypto Connections Face Scrutiny
Another day, another crypto scandal—just when you thought the ’stablecoin’ drama couldn’t get juicier. A federal judge just dropped the hammer on central figures in the LIBRA case, freezing assets faster than a Bitcoin whale dumps during an FUD storm.
Meanwhile, Javier Milei’s financial ties are getting the microscope treatment—because nothing says ’libertarian’ like allegedly cozying up to centralized crypto power players. Who needs irony when you’ve got blockchain?
Bonus jab: If transparency were a crypto project, half of finance would still be running on Excel spreadsheets—oh wait.
Surveillance footage fuels suspicion
On Feb. 14, Milei tweeted in support of LIBRA from his official account, describing it as a pathway to financial freedom. The endorsement triggered a wave of retail investment, which took the token’s market cap to over $4.5 billion.
However, the token’s price collapsed more than 85% and its liquidity vanished within days of the endorsing tweet, prompting allegations of market manipulation, insider profiteering, and systemic fraud. Public trust in Milei’s administration cratered after the scandal.
According to the case file, Novelli acted as a central figure in the scheme, facilitating connections between the presidential circle and Hayden Davis, a foreign financier who helped seed the project. Authorities have also issued an Interpol notice seeking Davis’ arrest.
Novelli rented a set of bank safety deposit boxes just 10 days before Milei’s tweet. Surveillance footage published by media outlets later showed Novelli’s mother and sister removing large bags from those boxes the morning after the endorsement went live.
According to a report by the Federal Police’s Anti-Money Laundering Division, the weight and handling of the bags suggest they may have been filled with large quantities of cash.
A local media report noted that the bags appeared empty upon arrival but were “visibly heavier” as the women exited, prompting suspicions of cash withdrawals tied to the LIBRA scheme.
Asset freeze and political fallout
Judge Servini’s asset freeze applies to Novelli, Manuel Terrones Godoy, and Sergio Morales, three individuals identified as central actors in the scheme.
The 90-day measure bars the sale or transfer of properties and vehicles to maintain the accused individuals’ financial footprint while prosecutors investigate alleged financial crimes.
LIBRA was marketed as a digital alternative for Argentines seeking to escape inflation and currency controls. Critics have since accused the project of operating without transparency and leveraging political influence to draw in unsuspecting investors.
Milei has denied any personal gain from the venture and deleted the tweet promoting LIBRA amid the backlash. The presidency has not responded to the latest judicial actions, but the investigation into financial links between his inner circle and the token’s promoters continues to escalate.
Opposition lawmakers are now calling for an independent inquiry into the president’s involvement and whether his public endorsement constituted abuse of office or market manipulation.
