Argentina’s federal judiciary has ordered an asset freeze on US promoter Hayden Davis. Judge Marcelo MartÃnez de Giorgi issued the order. This measure deepens the investigation into the Libra token scandal, one of the region’s largest crypto scams.
The court order affects digital wallets, bank accounts, and real estate assets belonging to Davis. It also includes Argentine operator Orlando Rodolfo Mellino and Colombian trader Favio Camilo RodrÃguez Blanco. Prosecutors stated the freeze aims to secure assets that could be the proceeds of fraud. The money trail is estimated at $100 to $120 million. Furthermore, the National Securities Commission (CNV) will notify all local Virtual Asset Service Providers (VASPs) to ensure compliance.
The case centers on Libra, a memecoin that crashed spectacularly in February. The token briefly gained traction after President Javier Milei promoted Davis on social media as a blockchain and AI advisor. Just hours after the promotion, the token plummeted. This caused estimated losses of $250 million for over 40,000 retail investors. Davis has been identified as the central figure in the scheme.
Will this case set a precedent in cross-border blockchain regulation?
The investigation has implications across multiple jurisdictions. In May, a New York judge froze $57 million in the USDC stablecoin tied to Davis and the now-defunct Meteora exchange. Although that specific order was later lifted, the litigation in the United States continues. The US lawsuit accuses Davis, former Meteora CEO Ben Chow, and others of coordinating a “rug pull”. Plaintiffs invoked the RICO Act, alleging a pattern of organized fraud involving Libra and M3M3, another Davis project.
Although President Milei faces no criminal charges, the investigation in Argentina sparked the “Cryptogate” controversy. Court filings describe alleged token-to-cash conversions during high-level political meetings. The coordinated actions between Buenos Aires and New York mark a legal milestone. It is a rare instance of courts on two continents targeting the same digital assets. The Libra token scandal highlights how cross-border enforcement and political entanglements are becoming increasingly intertwined with crypto investigations.
