Argentine judge orders freezing of 25 cryptocurrency wallets in response to LIBRA investigation

An Argentine court has ordered the identification of 25 cryptocurrency wallet holders and the freezing of assets in connection with the $LIBRA investigation

After authorities traced the flow of millions of dollars in funds on multiple blockchain networks, an Argentine court has ordered the identification of 25 cryptocurrency wallet holders and the freezing of related assets in connection with the $LIBRA token investigation.

Summary

An Argentine judge ordered the identification of 25 cryptocurrency wallet holders related to the $LIBRA investigation and the freezing of related assets. Investigators traced nearly 498,539 USDT through multiple wallets, including multiple transactions through Binance, Bybit, OKX and Bitfinex. Authorities are seeking KYC records and transaction data after tracking that about $8.2 million in funds began flowing again in May.

According to Argentine media reports, federal judge Marcelo Martinez de Giorgui issued the order after reviewing a report by the Argentine Federal Police Cybercrime Technical Branch that reconstructed the flow of cryptoassets associated with the $LIBRA case since May. The order requires the identity of the account holder, customer records that know you, IP addresses, transaction history and other information that may identify the person behind the transaction.

The latest measures target 25 wallets believed to have handled some of the funds left to creators after the failed $LIBRA token issuance in February 2025. The judge also directed authorities to freeze assets associated with the wallets, but it was unclear whether the funds were still stored in the wallets or had been moved elsewhere.

Court documents reviewed by the media reconstructed the activities of eight wallets identified as the "Libra Team" that investigators linked to the creation of the tokens and the withdrawal of investor funds after Argentine President Javier Millay promoted the project on social media. During this period, the token's price briefly soared, then plummeted within minutes.

According to reports, token creator Hayden Davis previously stated that he still controlled approximately $110 million after the issuance. Investigators found that four of the eight Libra team wallets consolidated funds into a wallet identified as "61yk."

Investigators track funds through exchanges

Police report that the wallet "61yk" was frozen for nearly six months on an order from the U.S. District Court for the Southern District of New York, which is handling a separate case involving Davis. After the restrictions were lifted, investigators accused the wallet of using a "digital money laundering" strategy described in the report to reallocate funds, splitting large balances into small transfers to make transactions more difficult to track or ultimately convert them into legal tender.

Authorities traced a major transaction on May 10, when 498,539 USDT was transferred to a wallet on the Tron network through a cross-chain interoperability protocol. The receiving wallet then divided the funds into 17 separate transactions, in what investigators said was another attempt to cover their tracks. The federal police report found that at least 10 of the transactions went through Binance, while eight wallets were associated with Bybit, two were associated with OKX, and two were associated with Bitfinex. Because centralized exchanges typically require customer identification, investigators believe these transfers may help identify some of the people involved, although the report notes that some platforms may not keep KYC information for each account.

Fernando Molina, a cryptocurrency analyst who previously independently tracked the flow of $LIBRA funds, estimates that approximately $8.2 million remained dormant until reactivated in May through wallets that are currently subject to judicial review. According to independent information reviewed by the media, the remaining funds are managed through a trust fund established by Davis to distribute funding to Argentine companies as part of the project's proposed restart before the end of this year. Earlier reports stated that the trust had received 71 funding applications.