On May 14, 2025, an Argentine federal judge, María Servini, ordered the freezing of assets belonging to key figures behind the LIBRA meme coin project as part of an investigation into a suspected pump – and – dump scheme. The move came after the token’s value collapsed following a public endorsement by President Javier Milei. Here is a detailed account:
Background of the LIBRA Scandal
Milei’s Endorsement: On February 14, Milei tweeted in support of LIBRA from his official account, describing it as a pathway to financial freedom. This endorsement triggered a wave of retail investment, pushing the token’s market cap to over $4.5 billion.
Subsequent Collapse: However, the token’s price collapsed more than 85% and its liquidity vanished within days of the endorsing tweet, leading to allegations of market manipulation, insider profiteering, and systemic fraud. Public trust in Milei’s administration plummeted after the scandal.
Details of the Asset Freeze and Investigation
Targeted Individuals: The asset freeze applies to three central figures in the scheme: Novelli, Manuel Terrones Godoy, and Sergio Morales. The 90 – day measure bars the sale or transfer of properties and vehicles to maintain the accused individuals’ financial footprint during the investigation.
Link to Milei: Judge Servini also authorized the lifting of banking secrecy protections for Milei and his sister, Karina Milei, allowing investigators to access their financial transaction history. Novelli is identified as a key figure facilitating connections between the presidential circle and Hayden Davis, a foreign financier involved in the project. Authorities have issued an Interpol notice seeking Davis’ arrest.
Suspicious Activities: Novelli rented a set of bank safety deposit boxes 10 days before Milei’s tweet. Surveillance footage showed Novelli’s mother and sister removing large bags from these boxes the morning after the endorsement. The bags appeared empty upon arrival but were “visibly heavier” when the women exited, raising suspicions of cash withdrawals tied to the LIBRA scheme.
Public Reaction and Political Fallout
Criticism of the LIBRA Project: LIBRA was marketed as a digital alternative for Argentines seeking to escape inflation and currency controls, but critics accused it of operating without transparency and leveraging political influence to attract investors.
Call for Independent Inquiry: Milei has denied any personal gain from the venture and deleted the tweet promoting LIBRA. However, opposition lawmakers are calling for an independent inquiry into the president’s involvement and whether his public endorsement constituted abuse of office or market manipulation. The investigation into financial links between Milei’s inner circle and the token’s promoters continues to intensify.
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