Circle freezes $58 million in USDC on two wallets linked to the memecoin LIBRA, accused of fraud after a surge in its market cap in Argentina.
Argentinian President Javier Milei, initially a supporter of the project, now claims to have been manipulated, with suspicions falling on his sister.
Despite complaints and requests for access to Milei’s bank accounts, the Argentinian investigative unit handling the case was mysteriously dissolved.
Circle freezes 2 wallets linked to memecoin LIBRA
The hammer has fallen: Circle has frozen two wallets linked to the Libra project, an explosive then fraudulent memecoin that shook Argentina. Amount blocked: $57.6 million in USDC. A decisive move as the political-financial scandal continues to escalate.
Two wallets under scrutiny
According to Arkham, one of the frozen wallets alone holds over $44 million. The other, identified as the Libra deployer wallet, contains around $13 million. Circle, the issuer of USDC, has not specified which authority requested the freezing of these funds.
Two theories clash: the firm Burwick Law claims to have obtained the order from a US federal court. Meanwhile, lawyer Martin Romeo, involved in the case in Argentina, asserts that the request was made locally by South American plaintiffs. Circle, on the other hand, remains silent.
Milei, memecoins, and political manipulation
At the core of the scandal: the promotion of the LIBRA token by Argentinian President Javier Milei. Initially pitched as a tool to aid local SMEs, the project saw its market cap skyrocket to over $2 billion before plummeting more than 90%. Milei had even shared the contract address on his social media before retracting publicly.
He now claims to have been manipulated, denying any direct connection to the project. However, according to Hayden Davis, CEO of Kelsier Ventures and purported advisor to Libra, Milei’s sister was the one who received payment to influence the president.
An investigation in turmoil
As fraud allegations were laid against Milei, the Argentinian justice system sought access to the president and his sister’s bank accounts. Yet, a few days later, the special unit handling the Libra investigation was abruptly dissolved.
Between political manipulation, monetary influence, and evidence disappearance, the Libra scandal is evolving into a state affair. And now, $58 million frozen only adds weight to the case.
