Cryptocurrency

Argentina Libra token freeze—judge orders wallet seizure

An Argentine judge's urgent Libra token freeze targets wallets from the Milei-promoted crypto, escalating the political scandal over the missing millions.

An Argentine federal judge has ordered an urgent freeze of crypto wallets tied to the controversial Libra token, the latest turn in a scandal that has already ensnared President Javier Milei.

The measure targets 25 wallets that moved the funds remaining after Libra’s token sales, and it arrives more than a year after the token’s collapse. Per Bitcoin.com, Federal Judge Marcelo Martinez acted after a Federal Police cybercrime report reconstructed the money trail across several crypto networks starting in May.

The order lands as the Libra affair keeps generating political heat in Buenos Aires. Milei promoted the token on social media, and the fallout has already produced congressional probes and fraud complaints that put the president in their sights.

How The Libra Token Freeze Unfolded

The Argentina Libra token freeze, ordered by Federal Judge Marcelo Martinez, seeks to identify the owners of 25 wallets that moved funds left after the Libra launch and to freeze the assets sitting in them. According to a document reviewed by local media, the order followed a report from the Federal Police’s Cybercrime Technical Department that traced the wallets through multiple crypto networks beginning in May.

Eight wallets labeled “Libra team” had direct involvement in the token launch after Milei promoted it online. The report tracked their movements, with four consolidating nearly $57 million into an address that the U.S. District Court for the Southern District of New York had blocked and later released after finding the funds were no longer at risk of dissipation.

The flagged wallet allegedly mixed funds through several others. On May 10, a massive transfer funneled nearly 500K through an interoperability protocol into a Tron address, and of 17 movements, at least 10 passed through Binance, while eight wallets linked to Bybit, two to OKX, and two to Bitfinex.

The Political Weight Of The Wallet Order

The Libra collapse has dogged Milei since he promoted the project, fueling congressional probes and fraud complaints aimed at his inner circle. A federal order that names wallets connected to the launch raises the legal stakes for anyone who profited from the token’s brief run.

Local media reviewed the underlying court document, and the police technical report gives prosecutors a roadmap built on exchange records. Most centralized venues enforce crypto compliance via know-your-customer rules, so at least part of the $8.2 million tied to these wallets should be traceable to real users.

The order also lands as U.S. lawmakers advance the CLARITY Act to tighten oversight of digital assets. The remaining funds now sit with a so-called Libra Trust that plans to distribute them as grants to Argentine companies before November, with 71 applications already pending.

FAQ

What was the Libra token?

The Libra token was a cryptocurrency that Argentine President Javier Milei promoted on social media, an endorsement that preceded a collapse and a wave of fraud investigations into the project’s backers.

Why does the wallet freeze matter?

The order gives prosecutors a KYC-driven path to unmask the owners of 25 wallets that moved funds after the launch, including eight “Libra team” wallets, and it deepens legal pressure on figures tied to the Milei-promoted project.

What comes next in the Libra case?

Authorities will seek identities from exchanges such as Binance, Bybit, OKX and Bitfinex, while a Libra Trust manages the remaining funds and aims to distribute grants to 71 Argentine companies before November.