Argentine Court Freezes Assets Connected to LIBRA Memecoin Linked to President Milei

Argentine Federal Judge Marcelo Giorgi has frozen assets tied to individuals connected to the LIBRA memecoin scandal that implicated President Javier Milei.

The “prohibition of innovation” order targets properties and financial holdings belonging to entrepreneur Hayden Davis and two cryptocurrency operators.

According to Cryptopolitan, Argentine federal judge Marcelo Giorgi has issued a "prohibición de innovación" order to freeze assets linked to the LIBRA memecoin scheme that was publicly promoted by President Milei. The measure covers U.S. businessman Hayden Davis and two crypto…

— Wu Blockchain (@WuBlockchain) November 11, 2025

The precautionary measure remains in effect indefinitely. The two crypto operators have been identified as Argentine Orlando Mellino and Colombian Favio Rodriguez.

Both allegedly control crypto wallets showing suspicious activity now under judicial scrutiny.

Federal prosecutor Eduardo Taino requested the asset freeze. His request was supported by a technical report from the Secretariat for Financial Investigation and the Recovery of Illicit Assets, alongside the General Directorate for Asset Recovery and Forfeiture of Goods.

Maria Bergalli and Maria Chena signed the report recommending proceedings against all three men.

Court Moves to Preserve LIBRA Memecoin Fraud Proceeds

Judge Giorgi granted the request to preserve assets potentially constituting proceeds from fraud against hundreds of investors. Estimates place investor losses between $100 million and $120 million from the LIBRA collapse.

Rodriguez and Mellino entered the legal proceedings due to their roles as intermediaries in crypto-to-fiat conversion operations.

Multimillion-dollar cryptocurrency transactions between Davis and two other Argentines involved in the case, Mauricio Novelli and Manuel Godoy, formed part of the suspected money trail.

Rodriguez also participated in opening a safety deposit box attributed to Novelli. Novelli’s sister and mother allegedly withdrew bags from a Banco Galicia branch hours after LIBRA collapsed in February 2025.

Judge Giorgi concluded that legal requirements for plausibility and danger of delay were satisfied. He clarified the measure prevents consolidation of crime proceeds, citing risks that investigated parties would dispose of suspicious crypto before case closure.

LIBRA Token Assets Face Nationwide Platform Block

The prohibition of innovation will remain active for the period strictly necessary to fulfill process purposes, Giorgi stated. He ordered his decision be notified to Argentina’s National Security Commission (CNV).

The CNV must inform virtual asset service providers and extend the block to all crypto platforms operating in Argentina. This ensures comprehensive enforcement across the nation’s cryptocurrency ecosystem.

The LIBRA token launched on February 14, 2025, created by Hayden Davis, CEO of crypto investment firm Kelsier Ventures. The coin operates on the Solana blockchain, known for fast and low-cost transactions popular among memecoin traders.

President Milei posted social media endorsements that evening, claiming the token would boost Argentina’s economy and support small businesses. He linked to the token’s website, promoting it as funding for local companies and ventures.

It all began with this post at 5:01 PM ET from Javier Milei.

As seen during President Trump's memecoin launch, the first hour was full of speculation:

Was this a hack or a real launch?

It turned out to be real as multiple other Argentinian politicians posted the news. pic.twitter.com/cL0ZQgxtCB

— The Kobeissi Letter (@KobeissiLetter) February 15, 2025

The token’s price surged from near zero to almost $5 following Milei’s endorsement, pushing market capitalization above $4 billion. However, community warnings appeared on his post later advising users to verify the project before engaging.

$Libra token creator sent 30.000.000 tokens to wallets just to dump on retail without them noticing cause they provided one sided liquidity and removedhttps://t.co/WgM3E8JH4N pic.twitter.com/vm3FIfMygq

— Caneleo🧐🔎 (@Caneleo55) February 14, 2025

Milei subsequently deleted his post, claiming incomplete awareness of project details and withdrawing support. Within hours, the token’s value plummeted to cents, with market cap losses exceeding $4.4 billion.

Insiders sold $87.4 million worth of LIBRA within the first three hours of launch, according to The Kobeissi Letter. A single group controlled 82% of tokens without public disclosure of token economics. Davis admitted to keeping some profits despite the sharp decline.