Court Freezes $100M in LIBRA Memecoin Tied to Javier Milei
An Argentine federal judge has ordered an indefinite freeze on over $100 million in LIBRA memecoin assets linked to President Javier Milei. The ruling targets three individuals, including U.S. investor Hayden Davis, and crypto operators Orlando Mellino and Favio Rodriguez, on suspicion of money laundering. Prosecutors allege Davis transferred $507,500 via the Bitget exchange just 42 minutes after Milei posted a selfie with him on January 30. The National Securities Commission has been instructed to extend the LIBRA memecoin freeze across all local trading platforms. This follows Circle’s May freeze of $57 million in USDC tied to the LIBRA team. Traders should monitor potential liquidity strains, heightened regulatory scrutiny of memecoins and shifts in market sentiment as the investigation unfolds.
Bearish
The indefinite freeze on LIBRA memecoin assets and related USDC holdings will tighten liquidity and deter speculative trading. In the short term, blocked funds and heightened regulatory risk are likely to drive sell pressure. Over the long term, ongoing investigations and stricter oversight may undermine confidence in the token, limiting its appeal to traders.