Argentine judge freezes assets in Milei-linked Libra probe

Argentine federal judge Marcelo Giorgi has ordered an indefinite freeze on properties and financial assets linked to Hayden Davis and crypto operators Orlando Mellino and Favio Rodriguez. The move is part of the Buenos Aires investigation into the LIBRA memecoin.

The court applied a precautionary measure called a “prohibition of innovation,” which blocks any changes or disposal of the assets. This includes bank accounts and crypto wallets connected to the three. The order, requested by federal prosecutor Eduardo Taino, aims to preserve funds suspected of being tied to fraud while the case continues. The National Securities Commission (CNV) has been instructed to notify virtual asset service providers so that the freeze applies across all crypto platforms in Argentina.

A technical report from the Secretariat for Financial Investigation and the Recovery of Illicit Assets, along with the Public Prosecutor’s Office, supported the action. Analysts concluded there was a clear risk that the assets could be moved or hidden if not frozen.

Investigators estimate that LIBRA’s collapse caused losses of $100 million to $120 million for hundreds of investors. Mellino and Rodriguez are implicated as intermediaries who converted crypto to fiat. Prosecutors traced multimillion-dollar transfers among wallets linked to Davis and two Argentines, Mauricio Novelli and Manuel Godoy.

Documents show that Rodriguez helped open a safety deposit box in Novelli’s name. In a related case, Novelli’s sister and mother allegedly removed bags from a Banco Galicia branch shortly after LIBRA collapsed. The freeze is meant to prevent the assets from being consolidated or dissipated while the authorities investigate.

Prosecutors also highlighted a $507,500 transfer made by Davis through Bitget just 42 minutes after President Javier Milei posted a selfie with him on January 30, calling him an advisor on blockchain and AI. Investigators are checking whether transactions around that time could involve indirect bribes to public officials.

Other documents suggest Argentine lobbyists linked LIBRA to plans to monetize the president’s image. Records show that Novelli and Milei met three months before LIBRA’s launch to discuss projects expected to generate millions. Novelli argued that the president’s image could be used without breaking ethics laws, while Milei’s lawyer at the time, Diego Spagnuolo, opposed it due to potential conflicts of interest.

Leaked messages attributed to Davis reportedly show him boasting about political connections and influence. One message mentioned sending money to Milei’s sister, claiming the president “signs what I say and does what I want.”

Plaintiffs allege that LIBRA promoters ran a “rug pull,” using heavy promotion and undisclosed market control to extract funds from retail investors. The court’s freeze will remain in place only as long as necessary to trace flows between wallets and bank accounts and determine whether fraud or other crimes occurred.

As GNCrypto wrote previously, Milei’s La Libertad Avanza (LLA) party won Argentina’s midterm legislative elections in October 2025. Argentina continues to maintain active crypto policies despite the investigation. Current rules allow the use of crypto in contracts, require registration for virtual asset service providers, and support pilot projects for tokenizing real-world assets. Markets have been closely watching the peso and sovereign spreads as President Milei’s coalition advances economic legislation.