Investigation into $LIBRA Token
An Argentine federal judge has mandated that authorities identify the individuals associated with 25 cryptocurrency wallets amid an extensive investigation into the $LIBRA token, which has already exposed a significant flow of millions across various blockchain networks. Judge Marcelo Martínez de Giorgi made this decision after assessing findings from the Cybercrime Technical Department of the Argentine Federal Police, where investigators meticulously traced transactions linked to the $LIBRA initiative dating back to May 2025.
Judicial Directive and Focus of Inquiry
This judicial directive seeks to unveil essential details about account holders, including their identities, know-your-customer (KYC) records, IP addresses, and comprehensive transaction histories, which may shed light on the individuals behind the cryptocurrency dealings. The focus of this inquiry is primarily on 25 wallets that were allegedly tied to funds abandoned by the developers of the $LIBRA token following its unsuccessful launch in February 2025.
While the judge has ordered a freeze on assets connected with these wallets, it remains uncertain whether the funds are still contained within them or have potentially been moved to alternate locations.
Analysis of Wallets and Promotional Campaign
Court documents indicate a thorough analysis of eight wallets linked to the so-called “Libra Team,” reportedly associated with the token’s development and the withdrawal of investor capital after a promotional campaign driven by Argentine President Javier Milei. This promotional effort led to a fleeting increase in the token’s value, which ultimately collapsed shortly thereafter.
Notably, Hayden Davis, the creator of the $LIBRA token, previously mentioned that he retained approximately $110 million in assets following the token’s launch.
Investigators noted that four of the aforementioned Libra Team wallets merged their funds into a wallet designated as “61yk.” According to police documentation, this wallet has been frozen for around six months due to a ruling from the U.S. District Court for the Southern District of New York, involved in an independent case concerning Davis.
Digital Smurfing and Transactions
After the freezing order was lifted, authorities alleged that the wallet executed an operation known as “digital smurfing,” whereby larger amounts were divided into smaller, less conspicuous transactions aimed at evading tracking or facilitating conversions to fiat currency. A significant transaction was recorded on May 10, involving the transfer of 498,539 USDT via a cross-chain interoperability protocol to a wallet on the Tron network, which subsequently dispersed the funds across 17 transactions—a purported effort to obfuscate the funds’ path.
According to the Federal Police investigative report, at least ten of these transactions made their way through Binance, while eight were associated with Bybit, two with OKX, and another pair with Bitfinex. Given that centralized exchanges typically require identity verification for their users, investigators hope these transfers will allow them to pinpoint some individuals involved, although it’s acknowledged that not all platforms maintain KYC data for every account.
Future of $LIBRA Funds
Crypto analyst Fernando Molina, who has been tracking the $LIBRA funds independently, previously suggested that around $8.2 million had been inactive until it was reactivated in May through wallets currently under judicial examination. Additionally, reports from Clarín reveal that these leftover funds are allegedly administered through a trust set up by Davis, which is anticipated to make grants to Argentine businesses in a bid to rejuvenate the project before the year’s end. Reports indicate that this trust has already received 71 applications for grants.
