Argentina trains prosecutors to track down and seize cryptocurrency assets

Argentina's Public Prosecutor's Office launches special training on virtual asset tracking and seizure

As the role of cryptocurrencies in criminal investigations becomes increasingly prominent, the Argentine Public Prosecutor's Office (MPF) has conducted special training for prosecutors, officials and staff to improve their ability to track, analyze and seize virtual assets.

This training course covers digital wallet analysis, cryptocurrency tracking, legal frameworks and procedures for freezing or seizing funds. Previously, Argentine courts had frozen millions of dollars in USDT in several major criminal investigations and successfully traced relevant crypto transaction records. The training follows recent cases such as the "LIBRA" case, where investigators successfully tracked the flow of funds involved across multiple wallets, blockchain networks and exchanges.

Course Content and Implementation Details

The Office of the Public Prosecutor stated that the special course entitled "Virtual Assets: Financial Analysis, Tracking, Detection and Seizure" is part of its elective academic project and will be conducted remotely on August 19 and September 2, respectively. The training is limited to internal agency employees, officials and judges, and focuses on the technical knowledge needed when digital assets become part of a financial or criminal investigation.

Carmen Chena, a lawyer who focuses on anti-money laundering controls, chaired the meetings through Zoom. The course covers financial analysis of digital wallets, cryptocurrency tracking, asset recovery, and legal procedures available when investigators seek to restrict or seize digital funds.

The course first explores the changes in asset recovery methods brought about by virtual assets, and then provides an in-depth analysis of the financial and property status of digital wallets. Participants studied Argentina's domestic legal framework and international rules regulating virtual assets, and examined the structure of the cryptocurrency ecosystem. The project covers different methods of taking preventive measures against digital funds and demonstrates the use of such procedures in investigations through practical cases.

Technical challenges in the LIBRA case

For the Public Prosecutor's Office, this topic falls within its functions as an independent institution in the Argentine judicial system. The agency is committed to promoting judicial action to safeguard legitimacy and social public interests, and one of its core responsibilities is to guide public criminal investigations. Cryptocurrency tracking has become an important part of several major cases in Argentina, requiring investigators to track transaction records across wallets, blockchain networks and exchanges.

In July, an Argentine judge ordered the identification of 25 cryptocurrency wallets linked to the LIBRA investigation and ordered the freezing of assets associated with those addresses. Investigators have reconstructed the flow of millions of dollars in money across multiple blockchain networks. A report by the Cybercrime Technical Branch of Argentina's Federal Police found that four of the eight wallets identified as belonging to the Libra team consolidated funds into a single address. Authorities then traced 498,539 USDTs that were transferred to Tron's online wallet through cross-chain protocols. The receiving address split the funds into 17 transactions, while investigators identified transaction transfers involving Binance, Bybit, OKX and Bitfinex.

The court retrieved Know Customer Identification Information (KYC) records, IP addresses, transaction history and other information that helped identify the people behind the transaction. The LIBRA case provides Argentine investigators with a recent example of the technical work required when crypto-assets flow through multiple addresses and trading platforms.

Previous reports pointed out that investigators are reviewing approximately $8.2 million in funds that moved again in May this year after dormant for several months, and that the wallets have been subject to judicial supervision. The survey stems from the launch of the LIBRA token in February 2025, which was promoted on social media by Argentine President Javier Millay. After Millay posted, its price climbed rapidly and then collapsed, triggering criminal and civil investigations into people involved in the project. Telephone records reviewed by prosecutors showed that before and after Millay posted social media posts, he had seven phone calls with an entrepreneur linked to LIBRA. Investigators did not disclose the content of the call. Millay denied any wrongdoing and said his involvement was limited to sharing information about what he believed was a private project that supported Argentina's economy.

Judicial investigations continue to review financial relationships, communications and transactions related to LIBRA. Prosecutors must analyze traditional records and blockchain activity to reconstruct the flow of funds associated with the token. Such investigations may require authorities to determine wallet addresses, establish links between addresses and individuals, track transfers of assets between different blockchains, and obtain customer records as funds pass through centralized exchanges. These overlaps with topics covered by MPF courses, including financial analysis of digital wallets, tracking methods, preventive measures and asset seizure procedures.

Previous stablecoin freezing cases by Argentine courts

Prior to the LIBRA investigation, Argentina's judicial system had used cryptocurrency tracking and asset restriction measures. In December 2024, an Argentine court seized a wallet containing approximately US$3.5 million in USDT during an investigation into Rainbowex, a platform suspected of Ponzi scheme trading. Authorities froze cryptocurrency wallets and bank accounts related to the case, and experts from Argentine cryptocurrency platform Lemon and blockchain forensics companies Chainalysis and Qlue provided technical support to track the funds. As part of the Rainbowex investigation, more than 15 raids were carried out across Argentina, resulting in at least four arrests. Authorities have worked with Interpol to locate multiple Malaysians suspected of involvement in the creation and operation of the platform. Rainbowex, which once offered investors a daily yield of 1% to 2%, allegedly affected people in the San Pedro region of Buenos Aires.

Argentine courts have also handled other disputes involving cryptocurrency recovery. In 2022, a court ordered Binance to return Bitcoin to victims of theft, another example of judicial authorities directly processing digital assets held or transferred through crypto platforms.

The regulatory environment and market status

The training by the Public Prosecutor's Office comes at a time when cryptocurrency use in Argentina remains high. According to Artemis data released by a16z Crypto on August 30, stablecoins account for 94% of Argentine peso-denominated cryptocurrency trading volume. Analysts estimate that approximately one-fifth of Argentines use cryptocurrency, and downloads of the country's top 15 cryptocurrency apps will increase by 93% year-on-year in 2024.

At the same time, Argentina has officially stepped up its supervision of encryption service providers. Crypto companies operating in Argentina face a clearer registration and compliance system, with authorities incorporating virtual asset providers into existing financial regulatory structures. The National Securities Commission (CNV) maintains the country's Virtual Asset Service Provider (VASP) registry. Companies entering the system must meet requirements related to anti-money laundering and counter-terrorism financing controls. For example, Bitget obtained VASP registration in Argentina in June this year, bringing the exchange into the country's regulatory framework for cryptocurrency service providers. Registered companies are required to fulfill their reporting and compliance obligations with the Argentine Financial Intelligence Unit and other relevant authorities.

At the same time, cryptocurrency activity has expanded to products developed by traditional financial institutions. In July this year, BIND Group and Petersen Group were developing peso stablecoins through their respective digital asset businesses for programmable payments, treasury operations, collateral management and on-chain settlement. For prosecutors investigating transactions in this expanding ecosystem, the MPF course covers national and international rules that apply to virtual assets, as well as practical ways to analyze wallets, track transactions, and take precautions against cryptocurrency funds.