Richter aims at central figures in the scales scandal with freezing asset; Mileis checked financial relationships

An Argentine federal judge instructed the freezing of assets of the most important figures behind the Libra's Memecoin project, while the investigators investigate potential fraud that are connected to the transportation of the digital token, including the examination of the financial operations that are bound to President Javier Milei and his sister Karina Milei, reported on May 15.

Judge María Servini issued the judgment on May 14th as part of a broader investigation into a suspected pump and dump scheme in which the scales was involved. Memecoin achieved global attention after Milei publicly advertised her on social media in February.

The judge also approved the protection of banking secrecy for both Milei and his sister and enabled the investigators to access their financial transaction history in order to obtain signs of irregular connections to the supporters of the project.

Monitoring material drives the suspicion

On February 14th, Milei tweeted from his official account to support Libra and described it as a way to financial freedom. The confirmation triggered a wave of retail investments, which increased the market capitalization of the token to over 4.5 billion US dollars.

However, the price of the token collapsed by more than 85% and its liquidity disappeared within days after the confirmation tweet, which caused allegations of market manipulations, insiders and systemic fraud. Public trust in Mileis administration cratened after the scandal.

According to the case file, Novelli acted as a central figure in the program and facilitated connections between the presidential group and Hayden Davis, a foreign financier who has the project. The authorities have also issued an interpol announcement to apply for Davis' arrest.

Novelli rented a number of bank acid self -locking boxes just 10 days before Milei tweet. Surveillance material from the media that were later published showed how Novelli's mother and sister had removed large bags from these boxes in the morning after the confirmation of confirmation.

According to a report by the anti-money laundering department of the federal police, the weight and handling of the bags indicate that they may have been filled with large amounts of cash.

In a local media report, the bags appeared empty on arrival, but when the women were “visibly heavier”, which looked suspicion of cash withdrawals associated with the Waspra system.

Freeze and political consequences of assets

Judge Servinis Asset Freeze applies to Novelli, Manuel Terrones Godoy and Sergio Morales, three people who were identified as central actors in the program.

The 90-day measure prohibits the sale or transfer of real estate and vehicles in order to maintain the financial footprint of the accused persons, while the public prosecutor is investigating alleged financial crimes.

The Libra was marketed as a digital alternative for Argentinians who wanted to escape in inflation and currency controls. Since then, critics have accused the project without operating transparency and using political influence to use unsuspecting investors.

Milei denied any personal profit from the company and deleted the tweet, which advertises the scales as part of the counter reaction. The presidency did not respond to the latest legal proceedings, but continued to investigate financial connections between his inner circle and the promoters of the tokens.

The legislators of the opposition are now calling for an independent examination of the participation of the President and whether his public confirmation was misuse of office or market manipulations.

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