Argentine court lifts Milei’s bank secrecy as LIBRA memecoin probe deepens

An Argentina court has ordered the Central Bank to lift the bank secrecy privileges of country President Javier Milei. This allows an examination of his financial records as federal prosecutors investigate his role in the LIBRA memecoin scandal.

Federal Judge Maria Servini made the order on May 16, over three months after the ill-fated X post from Milei. The President promoted the LIBRA memecoin in February, causing the price to soar significantly before it crashed due to a sell-off by insiders.

The crash of the LIBRA token led to massive losses for investors, with the token market cap reaching a peak of $4.5 billion.  While Milei deleted the post and denies seeing any gains from promoting the token, judicial investigations and legislative inquiries have continued in Argentina.

According to local media outlet Pagina 12, the judge’s order affected the President’s sister, Karina Milei, Argentina’s secretary general, and three other associates.

In the letter addressed to the Central Bank of the Argentine Republic (BCRA), Servini asked for a report on all banks operating or operating an account for the President, his sister, and the other associates involved.

Per media reports, the Central Bank is expected to provide information from 2023 till the present, which will form part of a confidential file on the President as investigations continue. Although President Milei has denied any foul play in the matter, he is currently facing civil and criminal charges for his role in promoting the memecoin.

Argentina Court freezes accounts of Milei associates

Meanwhile, the court has also ordered the freezing the accounts of three associates linked to the presidents. The three are Mauricio Novelli, a businessman with crypto ties, Manuel Terrones Godoy, a founding partner of Tech Forum, and  Sergio Morales, a former advisor of the National Securities Commission.

According to reports, Noveli is the connection between Milei and one of LIBRA’s creators, Hayden Davis. Milei, his sister, and the three associates are already facing a civil lawsuit from victims of the incidents.

Interestingly, surveillance footage has surfaced showing  Novelli’s mother, Maria Pia Novelli, and sister, Maria Alicia Rafaele, taking money from safes belonging to the businessman in a Banco Galicia branch in Buenos Aires on the next business day after President Milei promoted the token.

Experts report noted that the two entered the bank with empty bags and left almost an hour later with bags that appeared filled with money. Novelli had hired ten safety deposit boxes at the bank ten days before the Milei post.

Milei could face criminal prosecution if found wanting

Meanwhile, the outcome of the investigation could determine whether Milei would be prosecuted, given that criminal charges have been filed against him. Although the President of Argentina has insisted that he promoted it in good faith and has nothing to hide, he has already missed the virtual mediation hearing in the civil lawsuit.

Civil organizations and opposition leaders have also been calling for his impeachment. Some of those opposition lawmakers have also asked for an independent inquiry by the parliament to determine whether the President’s actions constitute abuse of office and market manipulation.

However, there are concerns that the investigations may not yield any result or justice for the victims, given that three months have already passed with no clear resolutions on the matter. Many believe that Milei’s influence as President could hamper any attempt to prosecute the case.

Interestingly, while the President and several associates came under fire, one of the major figures in the incident, Hayden Davis, appears to have escaped any form of investigation. Davis, also associated with other memecoins, including MELANIA, has been relatively quiet since the incident.

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