Argentina freezes 25 cryptocurrency wallets in response to $LIBRA token investigation

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Court orders to identify wallet holders and freeze digital assets

Law enforcement agencies track cryptocurrency flows through trading platforms

Investigation expands to provide context for the $LIBRA controversy

Argentina's federal court has frozen 25 cryptocurrency wallets related to the $LIBRA investigation.

Exchanges are required to provide wallet KYC documents involving $LIBRA transactions.

Law enforcement tracked the flow of $LIBRA assets on the wavefield network and multiple platforms.

The investigation involved wallets related to Binance, Bybit, OKX and Bitfinex.

Authorities expand their investigation after tracking millions of dollars in cryptocurrency transfers.

Court orders identification of wallet holders and freezing of digital assets

A federal court in Argentina has ordered the identification of controllers of 25 cryptocurrency wallets in connection with the ongoing $LIBRA investigation. The judicial order also requires cryptocurrency exchanges to submit customer documents and freeze all assets in designated wallets. The scope of the investigation has expanded significantly as law enforcement traced millions of dollars flowing through multiple blockchain networks.

Federal Court Judge Marcelo Martinez de Giogi issued the latest order based on an analysis of a cybercrime investigation report compiled by the Argentine Federal Police. The document details cryptocurrency transfers related to $LIBRA tokens since May. Law enforcement officials track transactions through multiple blockchain networks to identify the individuals responsible for the flow of funds.

Cryptocurrency exchanges must now submit customer identification data, Know You customer files, IP address logs, complete transaction records, and relevant account details. Law enforcement also requires any additional documents that may reveal the identity of persons associated with monitored transactions. Argentina's investigation has therefore shifted to gathering evidence from centralized cryptocurrency trading platforms.

The judicial order specifically identifies 25 digital wallets that allegedly handled funds retained by the project's founders after the disastrous token offering in February 2025. The judge also ordered the assets of all wallets under investigation to be frozen. However, officials did not disclose whether the target wallets currently hold tracked cryptocurrencies.

Law enforcement tracks the flow of cryptocurrencies through trading platforms

The Federal Police Department report details activity involving eight digital wallets marked as belonging to the Libra team. Investigators established a link between the wallets and the origin of the tokens and the transfer of funds after the market crash. Evidence shows that four wallets transferred assets into a consolidated wallet marked as 61yk.

Law enforcement found that the 61yk wallet had previously been frozen for nearly six months under a U.S. District Court order. The restriction stems from a separate legal process involving token founder Hayden Davis. Once the freeze was lifted, investigators recorded that the wallet generated new transfers in multiple blockchain ecosystems.

According to the investigation report, the transfer of cryptocurrency uses a method similar to digital money laundering, splitting large amounts of money into many small transactions. Investigators monitored a transfer of 498,539 USDT that entered the wavefield blockchain through the cross-chain bridge protocol. The destination wallet then divided the funds into 17 different transactions and distributed them to various terminal addresses.

Investigation expands to provide context for the $LIBRA controversy

In a recent blockchain analysis, investigators recorded at least ten transactions processed through Binance. They also identified eight wallets related to Bybit, two wallets related to OKX, and two wallets related to Bitfinex. Because centralized cryptocurrency platforms typically require identity verification, the Argentine court expects these records to greatly advance the investigation.

Cryptocurrency analyst Fernando Molina has previously monitored the flow of funds associated with the projects. His research calculated that about $8.2 million was dormant before reactivation in May. Those wallets have since become the core of an expanding judicial investigation in Argentina.

The $LIBRA token attracted widespread attention after Argentine President Javier Millay promoted the project on his social media, before its dramatic collapse. Since then, officials have been closely monitoring the flow of funds associated with the token. Separately, there are reports that the remaining cryptocurrency is managed through a trust structure set up by Hayden Davis to fund funding applications from Argentine companies as part of efforts to revitalize the project.