6-3-2025 – Federal prosecutor Eduardo Taiano has launched a sweeping investigation into the Libra memecoin debacle, seeking to freeze assets exceeding $110 million allegedly generated from the cryptocurrency’s controversial launch, according to reports by prominent Argentine newspaper Clarín.
The scandal has erupted into a political maelstrom, with opposition lawmakers calling for impeachment proceedings against President Javier Milei, whose social media endorsement of the Solana-based token last month preceded its meteoric rise and subsequent collapse.
At the heart of the controversy stands Hayden Davis, chief executive of Kelsier Ventures, who claimed in February to be serving as an advisor to Milei. Davis made the startling admission during a YouTube interview with investigator Stephen Findeisen, known professionally as Coffeezilla, that he personally holds custody of approximately $100 million in stablecoins and $13 million in liquidity provider fees derived from the Libra project.
The prosecutor’s investigation has intensified considerably, with Taiano seeking to recover deleted social media content, including Milei’s original promotional post from 14 February. That message, which included direct links to the token’s website and contract address, claimed Libra would provide financial support to Argentine startups and small enterprises.
Following the president’s endorsement, the cryptocurrency’s fully diluted market capitalisation briefly surpassed $2 billion before suffering a catastrophic 90% devaluation. Current market tracking data from DexScreener indicates the token’s value has plummeted to approximately $100 million.
Taiano has also requested telephone records and visitor logs from both the presidential residence and office as part of his expanding inquiry. Photographic evidence showing Milei with Davis, originally shared on the president’s social media account in January, appears to have been subsequently removed.
Whilst President Milei has attempted to distance himself from the cryptocurrency venture, claiming limited knowledge and hastily removing his promotional content, his political supporters maintain he played no direct role in the token’s creation.