Argentine Court Weighs Arrest of President’s Allies in LIBRA Scandal

A plaintiff in the ongoing LIBRA scandal in Argentina has requested the arrest of two close allies of President Javier Milei. This action follows revelations that the President significantly underestimated the number of local retailers affected by the recent price drop of the LIBRA token. The request has been submitted to federal judge Marcelo Martínez de Giorgi, who has yet to make a ruling.

The LIBRA scandal has drawn attention due to its implications for those involved in the token launch earlier this year. On Tuesday, Martín Romeo, a crypto expert and the acting plaintiff in the case, urged the judge to detain advisors Mauricio Novelli and Manuel Terrones Godoy. Both have been linked to the LIBRA launch and are considered flight risks, as Novelli holds Italian citizenship and Terrones Godoy has permanent residency in Mexico.

Recent disclosures from a congressional committee investigating the scandal have highlighted irregular transactions connected to Novelli and Terrones Godoy. Romeo’s findings indicate that the two, along with American investor Hayden Mark Davis, engaged in questionable financial activities prior to the scandal’s emergence.

Congressional Committee Uncovers Crucial Evidence

The congressional committee, led by Representative Maximiliano Ferraro, has gathered new evidence that contradicts President Milei’s claims about the LIBRA token’s impact. In statements made shortly after the token’s value diminished, Milei asserted that only a handful of Argentine investors were affected. However, data from Ripio, a major centralized crypto exchange in Argentina, reveals that 1,358 residents purchased the LIBRA token, starkly contradicting the President’s assertion.

Ferraro commented, “Ripio informed us that 1,358 residents in the country purchased the $LIBRA token, when Milei himself had said that ‘no more than five Argentinians’ had been affected.” He noted that this figure does not account for individuals who purchased LIBRA through decentralized platforms or overseas.

The congressional committee’s investigation also highlighted wallet transactions that link Novelli and Terrones Godoy to suspicious financial activities around the time of the token launch. Information from Binance and Gate.io confirmed that Novelli and Terrones Godoy maintained virtual wallets on those exchanges, providing a trail of financial activity that the committee is currently analyzing.

Financial Transactions Raise Questions

Romeo has meticulously tracked the movements of the wallets associated with Novelli and Terrones Godoy, revealing significant transactions linked to Davis. On January 30, 2024, the same day Davis met with President Milei at the Casa Rosada, he transferred a total of $1,015,000 USDT to a Bitget account. Following this, subsequent transfers included $695,000 to Novelli’s Binance wallet, further complicating the investigation.

Just days before the LIBRA launch, on February 3, 2024, Davis executed another substantial transaction, sending $1,991,000 USDT to an unknown Bitget account. This transaction raises further questions, as it included funds directed to a bank associated with Novelli and Terrones Godoy.

Security footage from a branch of Galicia bank shows Novelli, along with his family, interacting with safety deposit boxes shortly after these transactions. The congressional committee is investigating whether the funds received through the bank were the same as those linked to the suspicious transfers.

In light of these developments, the congressional committee has formally summoned President Milei and his sister Karina, who serves as his Secretary General, to provide testimony regarding their alleged involvement in the LIBRA scandal. Milei has reportedly ignored previous requests to respond to a questionnaire, prompting further scrutiny into his actions.

The ongoing investigation and potential arrest of key figures involved in the LIBRA scandal underscore the complexities surrounding this case, as authorities continue to untangle a web of financial transactions and claims made by those in power. The implications of these findings may significantly affect the credibility of President Milei’s administration in upcoming political discussions.