Argentine President Javier Milei and his sister, Karina Milei, recently missed a scheduled legal session regarding the controversial LIBRA meme coin scandal. Notably, no legal representatives appeared on their behalf during the session. This virtual hearing was a preliminary step toward potential civil litigation tied to the alleged multi-million-dollar cryptocurrency scheme.

LIBRA Meme Coin Investigation Gains Momentum

According to reports from local media, the virtual conference was attended by only one attorney, who represented Manuel Terrones Godoy, a defendant in the case. Godoy is reportedly linked to prior financial irregularities, raising further concerns about his role in the LIBRA controversy.

The ongoing investigation centers on allegations that the Mileis had connections to the promoters of the now-defunct LIBRA cryptocurrency. The coin collapsed shortly after gaining public attention due to President Milei’s endorsement on social media. Court documents suggest that the fraudulent scheme may have impacted approximately 25 victims across Argentina and internationally, with estimated losses totaling $4.5 million.

Judge Requests Access to Financial Records

Federal Judge María Servini has intensified the investigation by formally requesting the Central Bank to release financial records for both Javier Milei and Karina Milei. The request seeks banking information dating back to 2023, aiming to uncover potential links to the LIBRA cryptocurrency scheme.

Additionally, Judge Servini has ordered the freezing of assets belonging to several individuals involved in the creation and promotion of the LIBRA project. Among the key figures targeted are:

  • Mauricio Novelli: Founder of Tech Forum Argentina, who reportedly introduced the Mileis to American developer Hayden Davis.
  • Sergio Morales: A former National Securities Commission advisor allegedly connected to the scheme.
  • Manuel Terrones Godoy: A social media personality involved in promoting the cryptocurrency.

Asset Freezes and Suspicious Bank Activity

The legal action doesn’t stop at the key players. Family members of Mauricio Novelli, including his mother, María Alicia Rafaele, and sister, María Pía Novelli, have also been implicated. Security footage from a bank branch in Galicia captured suspicious activity involving the two women. On February 17, just one business day after President Milei’s endorsement of LIBRA, they were seen entering the bank with empty bags and leaving with visibly full containers. This unusual transaction has drawn the attention of federal investigators.

“At 11:03:08, the women were observed exiting the branch with their handbag and backpack appearing significantly more filled than when they arrived,” stated a Federal Police report from the Money Laundering division.

LIBRA Endorsement Sparks Controversy

The controversy surrounding LIBRA began on February 14, when President Milei publicly promoted the cryptocurrency’s launch on his social media platforms. Initially, the coin experienced a brief surge in value before plummeting shortly thereafter. Following the backlash, Milei released a statement claiming he had no knowledge of the transaction details tied to the digital asset.

The LIBRA scandal has not only raised questions about the integrity of those involved but also highlighted the risks associated with investing in cryptocurrencies without due diligence. The case continues to unfold as authorities dig deeper into the financial activities and connections surrounding the project.

Key Lessons for Crypto Investors

This situation serves as a critical reminder for investors to approach cryptocurrency projects with caution. Here are a few tips to protect yourself from potential scams:

  • Research Thoroughly: Investigate the team, project goals, and backing of any cryptocurrency before investing.
  • Be Wary of Celebrity Endorsements: High-profile endorsements do not guarantee legitimacy or success.
  • Verify the Project’s Credibility: Check for transparent documentation, audits, and regulatory compliance.
  • Invest Only What You Can Afford to Lose: Cryptocurrencies are highly volatile and carry significant risk.

The LIBRA scandal underscores the importance of vigilance in the rapidly evolving world of cryptocurrency. Stay informed and exercise caution when exploring investment opportunities in this space.

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