Argentine Court to Investigate President Milei’s Role in LIBRA Scandal

TLDR

• Argentina orders forensic search of President Milei’s phones in LIBRA probe.
• Prosecutors aim to uncover potential insider trading in the LIBRA scandal.
• Milei faces criminal investigation over his involvement in LIBRA coin collapse.
• Legal actions in Argentina and the US target President Milei for investor losses.

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An Argentine federal prosecutor has ordered a forensic examination of President Javier Milei’s mobile devices as part of an investigation into the controversial LIBRA meme coin launch. This move follows suspicions that Milei may have been involved in the promotion of the cryptocurrency, which led to significant investor losses. The probe targets Milei’s communication with key figures associated with the project and seeks to uncover any potential wrongdoing.

Investigation of Communication and Devices

Federal prosecutor Eduardo Taiano’s order directs investigators to perform a forensic analysis on President Milei’s phones. The goal is to identify any communications between Milei and LIBRA promoters, including Hayden Mark Davis, Mauricio Novelli, and Manuel Terrones Godoy. This analysis will focus on exchanges before, during, and after the meme coin’s launch.

Additionally, the search extends to other high-ranking individuals close to the President, including Karina Milei, Secretary General of the Presidency, and Sergio Morales, a former advisor to the National Securities Commission. The investigation will cover a broad range of digital platforms, including WhatsApp, Telegram, Instagram, Facebook, and LinkedIn, in an effort to uncover any discussions linked to the LIBRA coin.

The prosecutor has also requested the recovery of deleted content from all devices involved, as well as a search for specific keywords related to cryptocurrency and financial malpractice, such as “meme coin,” “rug pull,” and “insider trading.”

Focus on Geolocation and Virtual Wallets

In addition to communications, the forensic analysis will look into the geolocation data of those involved. Investigators will track devices used by Milei and his associates from two key periods: July 12 to 19 of the previous year and February 13 to 16 of this year. This will help establish where the individuals were located at crucial times around the LIBRA launch.

The analysis will also assess whether any of the phones contained cryptocurrency-related apps, such as Phantom or Solflare, which are commonly used for managing virtual wallets. This part of the investigation could provide further insight into the level of involvement that President Milei and his circle had in the cryptocurrency market.

LIBRA’s Rise and Fall

The LIBRA meme coin became a focal point of controversy after its initial surge in value. On February 2025, President Milei shared a tweet endorsing the coin shortly after its launch, which caused its market capitalization to spike to over $4 billion. However, the market value quickly plummeted when insiders, including those connected to the project, sold off large amounts, cashing out over $100 million. This drastic drop in value was compared to a “rug pull,” a term used in cryptocurrency circles to describe a fraudulent scheme where project promoters quickly liquidate their holdings, leaving investors with worthless assets.

After the event, Milei deleted his tweet and denied any direct involvement in the promotion of LIBRA. He later referred to the aftermath as a “slap in the face” and admitted the negative consequences of his tweet. However, his critics argue that the President’s actions may have contributed to the coin’s hype, leading to the subsequent market manipulation.

Legal Consequences and Ongoing Investigations

The LIBRA scandal has triggered multiple legal challenges in both Argentina and the United States. In Argentina, President Milei faces criminal and congressional investigations for his potential role in the event. Additionally, a class action lawsuit was filed in the United States, accusing him of causing investor losses due to his public endorsement of the cryptocurrency.

As the investigation into the LIBRA launch continues, authorities are working to uncover the full extent of President Milei’s involvement. The forensic analysis of his devices could provide crucial evidence in determining whether he played a direct role in the market manipulation, or if his endorsement was merely a coincidence.

The outcome of this investigation could have significant political and legal ramifications for President Milei and his administration.

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