LIBRA – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sun, 07 Sep 2025 17:07:16 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 LIBRA – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Stripe's Tempo Blockchain Is a 'Referendum on the Ghost of Libra,' Says Libra Co-Creator https://earlybirdsinvest.com/stripes-tempo-blockchain-is-a-referendum-on-the-ghost-of-libra-says-libra-co-creator/ https://earlybirdsinvest.com/stripes-tempo-blockchain-is-a-referendum-on-the-ghost-of-libra-says-libra-co-creator/#respond Sun, 07 Sep 2025 17:07:15 +0000 https://earlybirdsinvest.com/stripes-tempo-blockchain-is-a-referendum-on-the-ghost-of-libra-says-libra-co-creator/

Christian Catalini, co-creator of Facebook’s Libra project, warned on Friday that Stripe’s Tempo and Circle’s Arc could succeed commercially but at the cost of crypto’s decentralization ideal.

Launched in 2019, Libra was Meta’s bold bid to create a global digital currency backed by a basket of stable assets. The project promised to make payments as seamless as messaging, but it triggered immediate backlash from regulators concerned about financial sovereignty, systemic risk, and user privacy. By 2022, Libra — renamed Diem in a bid to reset its image — was shuttered and its assets sold off.

Catalini, who served as Libra’s chief economist, used his Sept. 5 thread on X to revisit the project’s early compromises and explain why they matter now. He said the original open design, developed with Harvard economist Scott Kominers, was reduced to a short appendix after months of regulatory negotiations.

The first major retreat, he wrote, was abandoning non-custodial wallets. Regulators insisted on a “clear perimeter,” meaning a responsible intermediary they could contact — and penalize — if problems arose.

For supervisors used to intermediated finance, a world where users truly held their own money was unmanageable. “For them, killing self-custody wasn’t a choice, it was an obvious necessity,” he recalled.

Catalini noted the irony: today, open networks are developing compliance tools native to blockchain that could have addressed these concerns more effectively than traditional frameworks. But back then, Libra was forced to strip away decentralization, a change he described as an early signal of where corporate-led projects were heading.

His broader lesson was stark: “As long as there is a single throat to choke — or a committee of them — you can’t truly rewire the system. Worse, any network with an architect is living on borrowed time.”

Arc and Tempo in the Spotlight

Catalini placed Stripe’s Tempo and Circle’s Arc in that context. Both are new blockchains designed explicitly for payments, promoted as stablecoin-first infrastructure for enterprises and fintechs.

Circle launched Arc on Aug. 12, presenting it as a Layer-1 network purpose-built for stablecoin finance. Unlike public chains that rely on volatile gas tokens, Arc uses USDC for fees, offering predictable, dollar-denominated costs.

It integrates a built-in foreign exchange engine, promises sub-second finality, and includes opt-in privacy features. Circle said Arc will support cross-border payments, onchain credit systems, tokenized capital markets and programmable, automated payments.

Just weeks later, Stripe and Paradigm unveiled Tempo on Sept. 4, describing it as a payments-first blockchain capable of handling over 100,000 transactions per second.

The network is EVM-compatible, features a dedicated payments lane with support for memos and access lists, and allows users to pay both transactions and gas in any stablecoin. Stripe said early design partners include Visa, Deutsche Bank, Revolut, Nubank, Shopify, OpenAI, Anthropic and DoorDash.

Both projects were marketed as steps toward mainstreaming stablecoin payments. But for Catalini, they raised a deeper concern.

A Revolution or a Failed Coup?

Catalini argued that corporate-led chains like Arc and Tempo risk simply rebuilding the old financial system with new players in charge. Instead of displacing card networks and banks, he warned, they could elevate fintech giants to the same position of dominance. “The throne will have new occupants, but it will be the same throne,” he wrote.

He also predicted such networks would fracture geopolitically, with Western and Eastern blocs unlikely to share a single corporate-led infrastructure. The result, he said, would be competing financial empires rather than the borderless system crypto’s early advocates envisioned.

Ultimately, Catalini described Stripe’s Tempo as a “referendum on the ghost of Libra.” If it thrives, he suggested, it may prove Libra failed because of timing, not design — and show that the dream of open, permissionless money has been overtaken by more pragmatic, centralized solutions.

]]> https://earlybirdsinvest.com/stripes-tempo-blockchain-is-a-referendum-on-the-ghost-of-libra-says-libra-co-creator/feed/ 0 57256 Argentina’s opposition party votes to reopen investigation into President Milei over LIBRA scandal https://earlybirdsinvest.com/argentinas-opposition-party-votes-to-reopen-investigation-into-president-milei-over-libra-scandal/ https://earlybirdsinvest.com/argentinas-opposition-party-votes-to-reopen-investigation-into-president-milei-over-libra-scandal/#respond Fri, 29 Aug 2025 00:19:24 +0000 https://earlybirdsinvest.com/argentinas-opposition-party-votes-to-reopen-investigation-into-president-milei-over-libra-scandal/

Argentina’s opposition parties have revived a stalled investigation into President Javier Milei’s role in the LIBRA scandal, seizing on new corruption allegations that have rattled the government just weeks before October’s elections.

The commission, first created in April but largely paralyzed by bureaucratic and congressional hurdles, was reactivated on Aug. 28 after leaked recordings implicated Milei and his sister Karina in a separate bribery scheme.

The tapes, belonging to former presidential attorney and government official Diego Spagnuolo, contained claims of cash-for-favors dealings. Spagnuolo later admitted the recordings were authentic.

Public backlash fuels probe

The scandal has triggered a wave of public anger. On Wednesday, protesters hurled lettuce and rubbish at Milei during a public appearance, an act that drew headlines across the country.

While no injuries were reported, the incident highlights mounting unrest against the president’s administration. The fresh controversy has given the LIBRA probe new momentum. It had lost traction after Milei dissolved its initial task force in May.

The LIBRA affair centers on allegations of insider trading and a pump-and-dump scheme tied to the digital token, a case prosecutors say may have involved Argentina’s highest levels of power.

Maximiliano Ferraro, a legislator from the Civic Coalition ARI and head of the new investigative body, said the commission intends to establish whether misconduct occurred. Ferraro said the investigation was reignited because questions remain over whether insider trading took place.

Political stakes ahead of elections

Five opposition parties, representing 136 of the Chamber of Deputies’ 257 lawmakers, voted to reopen the case despite pushback from Milei’s allies.

The commission set a reporting deadline of Nov. 10, weeks after Argentines head to the polls.

The inquiry adds to the mounting challenges facing Milei as he navigates a presidency already strained by economic turmoil and growing discontent. The combination of corruption scandals and revived investigations could weigh heavily on his political future.

While the LIBRA scandal has shaken Argentina’s crypto community, the broader allegations of bribery and abuse of power have struck a deeper chord with the public. With elections looming, the outcome of the investigation, and its political fallout, remains uncertain.

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]]> https://earlybirdsinvest.com/argentinas-opposition-party-votes-to-reopen-investigation-into-president-milei-over-libra-scandal/feed/ 0 55633 Hayden Davis Rebrands Controversial LIBRA Token As A Memecoin In Court Filing – Details https://earlybirdsinvest.com/hayden-davis-rebrands-controversial-libra-token-as-a-memecoin-in-court-filing-details/ https://earlybirdsinvest.com/hayden-davis-rebrands-controversial-libra-token-as-a-memecoin-in-court-filing-details/#respond Sun, 27 Jul 2025 21:02:08 +0000 https://earlybirdsinvest.com/hayden-davis-rebrands-controversial-libra-token-as-a-memecoin-in-court-filing-details/

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Hayden Davis, creator of the LIBRA token, has now described the crypto project as a memecoin in a recent court filing as part of a legal strategy to counter a class-action lawsuit. The American crypto entrepreneur and marketer continues to draw negative attention and remains under investigation following the highly questionable launch and crash of LIBRA in February 2025.

Davis’ Clash With US Private Investor Forces LIBRA Memecoin Admission – Report

The LIBRA project gained much popularity following public promotion by Argentine President Javier Milei on X, on February 14, 2025. The crypto token’s value soared to $5 in a few hours following its launch before plummeting to nearly $0. Since then, the nation’s leader has distanced himself from the crypto project while even authorizing an investigation into the event by the nation’s anti-corruption office.

According to local Argentine media Clarin, Omar Hurlock, a US private investor, through American law firm Burwick Law, has since initiated a class-action lawsuit against Hayden Davis and other persons behind LIBRA, including Benjamin Chow, co-founder of the Meteora platform, and Julian Peh, head of Kip Protocol.

In a 30-page defence against Hurlock’s claims of running a scam, Hayden Davis states the US investor has no evidence to back the complaints of ever purchasing tokens from him or other developers of the crypto project. In particular, Davis attacks Hurlock’s credibility to lead a class action in a case he is not a direct victim.

Furthermore, the crypto entrepreneur also publicly refers to LIBRA as a memecoin for the first time since the incident in February. Before this statement, the cryptocurrency had been previously described by all parties involved as an investment fund targeted at financing Argentine companies.

In ascribing memecoin status to LIBRA, the defendant emphasizes the speculative nature of this token while also claiming no promises were made to prospective investors. A statement from the brief reads:

Defendants provided no plans, details, or infrastructure to potential purchasers of the memecoin, nor did they provide detailed disclosures or tokenomic distribution information regarding how the funds raised would be allocated to fulfill the [allegedly] promised economic initiatives

The case is presently filed at the District Court for the Southern District of New York under Judge Jennifer L. Rochon and is scheduled for a hearing on August 19. The outcome of this lawsuit is also expected to influence the status of $250 million in frozen assets, which are linked to profits from the LIBRA project.

Price Overview

At press time, LIBRA trades at $0.01690 with its total market cap valued at $4.61 million.

LIBRA
LIBRA trading at $0.016372 on the daily chart | Source: Tradingview.com

Featured image from The Economist, chart from Tradingview

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

]]> https://earlybirdsinvest.com/hayden-davis-rebrands-controversial-libra-token-as-a-memecoin-in-court-filing-details/feed/ 0 50013 US entrepreneur Hayden Davis testifies in LIBRA case in New York as legal proceedings advance https://earlybirdsinvest.com/us-entrepreneur-hayden-davis-testifies-in-libra-case-in-new-york-as-legal-proceedings-advance/ https://earlybirdsinvest.com/us-entrepreneur-hayden-davis-testifies-in-libra-case-in-new-york-as-legal-proceedings-advance/#respond Sun, 29 Jun 2025 13:49:06 +0000 https://earlybirdsinvest.com/us-entrepreneur-hayden-davis-testifies-in-libra-case-in-new-york-as-legal-proceedings-advance/

In the latest development for the ongoing LIBRA coin legal saga, Argentinian newspaper La Nacion reports that Hayden Mark Davis, CEO of Kelsier Ventures, submitted a voluntary statement last Monday to a federal court in New York. The case centers on a class action lawsuit brought by U.S. investors who suffered losses following the rapid rise and subsequent collapse of the controversial LIBRA token.

Davis strongly denied any allegations of fraud, insider trading, or other misconduct. Instead, he attributed the token’s sudden price drop to Argentine President Javier Milei’s decision to delete a social media post endorsing LIBRA. According to Davis, Milei’s tweet initially boosted interest and investment in the project, but its subsequent removal fueled rumors and accusations that LIBRA was a scam, claims that Davis insists are false.

The entrepreneur described LIBRA as a project intended to support small businesses and educational initiatives in Argentina, not as a pump-and-dump scheme to defraud investors. He emphasized that he was unaware of any “snipers” (individuals who allegedly profited by purchasing large amounts of the token just before its launch) and denied any personal involvement in such activities.

Davis also sought to challenge the jurisdiction of New York federal courts, arguing that he has no residence or business activities in New York and that the project was conceived and executed in Argentina. He suggested that any legal proceedings should take place in Argentine courts.

Of particular note in Davis’s statement was his proposal to return approximately $100 million in investor funds, which he reportedly moved between February 14 and 15, 2025. However, this plan was blocked by a U.S. court order freezing over $55 million in crypto assets.

The case continues to unfold, with ongoing investigations in both the United States and Argentina. The Argentine Congress has recently convened a special commission to examine the matter, and experts have raised questions about the circumstances under which President Milei accessed information about the token, casting doubt on some of the official statements made at the outset of the controversy.

As legal and political scrutiny intensifies, the LIBRA case highlights the complexities and risks associated with meme coins and the influence of public figures in the digital asset market.

]]> https://earlybirdsinvest.com/us-entrepreneur-hayden-davis-testifies-in-libra-case-in-new-york-as-legal-proceedings-advance/feed/ 0 44802 Argentine Anti-Corruption Office clears President Milei of ethics violation over LIBRA promotion https://earlybirdsinvest.com/argentine-anti-corruption-office-clears-president-milei-of-ethics-violation-over-libra-promotion/ https://earlybirdsinvest.com/argentine-anti-corruption-office-clears-president-milei-of-ethics-violation-over-libra-promotion/#respond Mon, 09 Jun 2025 04:18:15 +0000 https://earlybirdsinvest.com/argentine-anti-corruption-office-clears-president-milei-of-ethics-violation-over-libra-promotion/

Argentina’s Anti-Corruption Office has determined that President Javier Milei did not violate any ethics laws when he promoted the Solana-based LIBRA memecoin in February.

In a resolution issued on Friday, the office declared that Milei’s Feb. 14 X post constituted a personal statement rather than an official announcement as a public servant. Therefore, Milei’s post did not result in any ethics violations, the document signed by Alejandro Melik, head of the Anti-Corruption Office, stated.

The Anti-Corruption Office is a decentralized agency that reports to the Argentine Ministry of Justice. Its chief, Melik, was appointed by the Milei administration in December 2023.

The office had launched an investigation into whether Milei had engaged in any misconduct after the LIBRA token price rose and cratered within hours of his X post promoting the project. Milei himself had requested the investigation and even created a special task force he disbanded last month after it fulfilled its mandate to examine his ties to the LIBRA token.

The case is still being investigated by an Argentine federal court, which froze Milei and his sister’s assets amid the probe.

The LIBRA scandal

The scandal erupted when Milei published an X post that was largely construed as an endorsement by the Argentine President. The post that was deleted within six hours and contained links to the Viva La Libertad Project website and the token’s contract number, which helped investors find it on Solana, stated:

“This private project will be dedicated to stimulating the growth of the Argentine economy by funding small businesses and Argentine entrepreneurs.”

Immediately following Milei’s post, the price of LIBRA rose sharply to around $5, but tanked soon after. Several investors lost millions of dollars as the token’s value fell by around 95%. The scandal rocked the Argentine market, even leading to a stock market crash days later.

Immediately after the token lost value, triggering an uproar on social media, including allegations of insider trading, Milei deleted the post. In a new post on Feb. 15, he clarified that he had no ties to the project, but had decided to delete the previous post after learning about the details of the project.

On Feb. 18, Milei said that he “acted in good faith” when he “shared” the project, and had, therefore, “made no mistakes.” His intention was not to promote the memecoin but to raise awareness about an effort to support Argentine businesses using crypto.

The same day, however, a local media outlet reported that LIBRA co-creator Hayden Davis boasted about his ‘control’ over Milei, thanks to his donations to Milei’s sister, Karina Milei.

Public trust in Milei’s administration cratered after the scandal.

The findings of the Anti-Corruption Office

The Anti-Corruption Office classified Milei’s post as a personal, non-official activity by the President of Argentina. It reiterated that the post “did not imply any governmental activity” since it was published from Milei’s personal X account, which receives no official management contributions or public resources.

The resolution added that Milei’s X account, where he presents himself as an “economist” and not a public official, predates his term as a congressman. The bureau, therefore, declared that the post was an expression of his personal opinion, a civil and political right guaranteed by the constitution.

The conclusion was further strengthened by the fact that the message was not disseminated through any official governmental accounts. The document added:

“…the post under analysis did not refer to public policies, programs, government decisions, or announcements with legal or budgetary effects.”

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]]> https://earlybirdsinvest.com/argentine-anti-corruption-office-clears-president-milei-of-ethics-violation-over-libra-promotion/feed/ 0 40953 Libra Wallets Locked: $58 Million in USDC Frozen By Court Order https://earlybirdsinvest.com/libra-wallets-locked-58-million-in-usdc-frozen-by-court-order/ https://earlybirdsinvest.com/libra-wallets-locked-58-million-in-usdc-frozen-by-court-order/#respond Sun, 01 Jun 2025 17:40:40 +0000 https://earlybirdsinvest.com/libra-wallets-locked-58-million-in-usdc-frozen-by-court-order/

The issuer of the stablecoin USD Coin
USDC


$0.9947

, Circle, has frozen nearly $58 million worth of USDC held in two Solana
SOL


$155.72

 wallets linked to the team behind the Libra meme token.

These wallets, marked as frozen on the Solana block explorer Solscan, are no longer able to move or exchange the funds.

According to Arkham Intelligence’s post on X, the larger wallet contains about $44.59 million in USDC, while the second one holds $13.06 million.

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The freeze was triggered by a court order requested by Burwick Law, a legal firm that handles crypto-related cases.

Max Burwick, one of the firm’s attorneys, said in a May 29 post on X that a federal court in the Southern District of New York had approved the restraining order, which led to Circle freezing the funds. His statement added that the decision was supported by attorney Tim Treanor.

In Argentina, where the Libra token gained attention after being promoted by President Javier Milei, the freeze appears to have been backed by the country’s justice department. Martin Romeo said the government also requested the freeze through legal channels.

Libra first launched on Solana in February, and its market capitalization reached several billion dollars. Within weeks, the price collapsed by nearly 90%, and several wallets linked to the project were found to have sold off large amounts of tokens.

In response, Argentine authorities charged President Milei with fraud and established a task force, known as the Investigation Task Unit (UTI), to investigate the case.

However, the UTI was shut down on May 19 without providing any final report or updates. How did lawmakers respond? Read the full story.

Aaron S. Editor-In-Chief

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

]]> https://earlybirdsinvest.com/libra-wallets-locked-58-million-in-usdc-frozen-by-court-order/feed/ 0 39552 US Court Blocks $57M in USDC Amid LIBRA Token Controversy https://earlybirdsinvest.com/us-court-blocks-57m-in-usdc-amid-libra-token-controversy/ https://earlybirdsinvest.com/us-court-blocks-57m-in-usdc-amid-libra-token-controversy/#respond Fri, 30 May 2025 08:41:02 +0000 https://earlybirdsinvest.com/us-court-blocks-57m-in-usdc-amid-libra-token-controversy/

A US federal court has frozen approximately $57.65 million worth of USDC stablecoins in connection with a class action lawsuit linked to the LIBRA token scam that took place a couple of months ago.

On 28 May 2025, the US District Court for the Southern District of New York issued a Temporary Restraining Order that froze the assets. The amount will remain frozen till June 9th, when a hearing is scheduled to determine if the freeze will remain in effect while the lawsuit proceeds.

Circle’s multi-sig freeze authority froze two Solana wallets in connection with the LIBRA deployer and project team as part of the ongoing lawsuit filed by the New York-based law firm Burwick.

As a part of the lawsuit, numerous LIBRA investors are suing Kelsier Ventures, a crypto firm, along with its co-founders, Gideon, Thomas, and Hayden Davis.

ALERT: $57M OF USDC ASSOCIATED WITH LIBRA FROZEN BY CIRCLE

Two Libra accounts have just been frozen by Circle, including the Libra deployer wallet.

These accounts contained a combined $57M in USDC which is now immobile. pic.twitter.com/HpmaM5HwVJ

— Arkham (@arkham) May 28, 2025

Other defendants in this case include Benjamin Chow, the co-founder of Meteora, a Solana-based DeFi platform; Julian Peh of KIP Protocol, a decentralised AI framework focused on digital property rights; and other organisations involved in the marketing of the LIBRA token.

Explore: The 12+ Hottest Crypto Presales to Buy Right Now

Background on the Lawsuit

The LIBRA memecoin attracted attention after a post on X by Argentinian President Javier Milei on 14 February 2025. The token was advertised as a means to fund small businesses in Argentina.

Within an hour of Milei’s advertisement on X, the LIBRA token’s value surged from a few cents to $5, and its market cap surged to $4 billion, only to crash by 94% within hours.

Reportedly, insiders controlling more than 70% of the supply dumped large amounts, sending the LIBRA token’s value spiralling downwards.

This sparked a political outrage in Argentina, with members of the opposition calling for Milei’s impeachment. Although the movement failed to gather momentum, a poll conducted in March 2025 by Zuban Córdoba suggested that the scandal harmed Milei’s approval rating and public image.

Burwick filed the lawsuit on 17 March 2025, alleging that the defendants launched the LIBRA cryptocurrency and deceived investors, ultimately misappropriating over $150 million while investors lost over $250 million.

Solscan, a blockchain explorer for Solana, disclosed data showcasing that the authorities froze approximately $44.59 million in stablecoins at the address 3Fwr…ZQpK, while someone locked more than $13 million from the wallet 3nHw…xNgH.

The asset freeze indicates that the US courts are ready to intervene to mitigate further losses and to ensure potential compensation for the victims. If successful, this case could set a new precedent and hold crypto founders and promoters accountable for misleading investors and fueling speculative hype cycles.

Explore: Top 20 Crypto to Buy in May 2025

Milei Shuts Down LIBRA Token Investigation

On 19 May 2025, Milei signed a decree to disband the investigative task force probing the LIBRA scandal. Notably, authorities have not brought any charges against Milei or any other Argentinian officials linked to the controversy.

Itai Hagman, a member of the Chamber of Deputies of Argentina, said, “It was always a fake, they never dared to investigate anything at all, and they’re covering each other up because they’re completely up to their necks in it.”

So far, the only explanation provided by the authorities for disbanding the task force is that it had fulfilled its assigned function.

Explore: Best New Cryptocurrencies to Invest in 2025

Key Takeaways

  • A U.S. federal court has frozen $57.65M in USDC amid a class action lawsuit over the LIBRA token scam
  • The funds stay frozen until June 9th, pending a hearing on whether the freeze continues during the lawsuit
  • LIBRA investors are suing Kelsier Ventures, a crypto firm, along with its co-founders, Gideon, Thomas, and Hayden Davis

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US Court Blocks $57M in USDC Amid LIBRA Token Controversy

]]> https://earlybirdsinvest.com/us-court-blocks-57m-in-usdc-amid-libra-token-controversy/feed/ 0 39117 US Court Blocks $57 million in USDC amid Libra Token Disputes https://earlybirdsinvest.com/us-court-blocks-57-million-in-usdc-amid-libra-token-disputes/ https://earlybirdsinvest.com/us-court-blocks-57-million-in-usdc-amid-libra-token-disputes/#respond Thu, 29 May 2025 16:26:47 +0000 https://earlybirdsinvest.com/us-court-blocks-57-million-in-usdc-amid-libra-token-disputes/

A US federal court has frozen USDC stubcoins worth approximately $57.65 million in relation to a class action lawsuit relating to the Libra token fraud that took place several months ago.

On May 28, 2025, the US District Court for the Southern District of New York issued a temporary restraining order that freed assets. The amount will remain frozen until June 9th, when a hearing is scheduled to be determined to determine whether the freeze is valid while the lawsuit progresses.

Circle’s Multisignature Authority has frozen two Solana Wallets in connection with the Libra Deplayer and Project team as part of an ongoing lawsuit filed by New York-based law firm Burwick.

As part of the lawsuit, numerous Libra investors are suing cryptocurrency Kercia Ventures along with co-founders Gideon, Thomas and Hayden Davis.

Other defendants in this case include Benjamin Chow, co-founder of Meteora, a Solana-based Defi platform. Julian Peh, the KIP protocol, is a decentralized AI framework focusing on digital property rights. Other organizations involved in the marketing of Libra tokens.

Explore:12+ Hottest Encryption Presale to Buy Now

The background of the lawsuit

Libra Memecoin attracted attention after Argentine President Javier Milei posted on X on February 14, 2025. The token was advertised as a way to fund small and medium-sized businesses in Argentine.

Within an hour of Milei’s ads on X, the value of Libra Token surged from a few cents to $5, and its market capitalization surged to $4 billion.

Reportedly, insiders controlling more than 70% of the supply were dumped in large quantities, and the value of the Libra token spiraled downwards.

This sparked political rage in Argentina, with opposition members sought Mairay’s blast each. The movement failed to gain momentum, but a poll conducted by Zuban Cordoba in March 2025 suggested that the scandal had harmed Mairay’s approval rating and public image.

Berwick filed a lawsuit on March 17, 2025, when the defendant launched Libra cryptocurrency, deceived investors, and eventually diverted more than $150 million, with investors losing more than $250 million.

Solana’s blockchain explorer, Solscan, has revealed data showing that the authorities freeze at the address 3FWR…ZQPK with a steady property of approximately $44.59 million.

The freeze on assets indicates that US courts are ready to step in to reduce further losses and ensure potential compensation for victims. If successful, this case can set new precedents, hold the founders and promoters of the code to blame investors for misleading investors and fuel the speculative hype cycle.

Explore: Top 20 Cryptos to Buy in May 2025

Milei closes Libra token investigation

On May 19, 2025, Mairay signed a law to disband the Investigation Task Force investigating the Libra scandal. In particular, the authorities have not filed any charges against Milei or any other Argentinean officials related to the controversy.

“It’s always been fake and they have never dared to investigate anything,” said Itai Hagman, a member of the Argentine agent.

So far, the only explanation provided by the authorities to disband the task force is meeting the assigned functions.

Explore: Best New Cryptocurrencies to Invest in 2025

Key takeout

  • A US federal court frozen $57.65 million in USDC in a class action lawsuit against Libra token fraud

  • Funds will remain frozen until June 9th with a hearing awaiting whether the freeze will continue during the lawsuit.

  • Libra Investors is suing Crypto’s company Kelsier Ventures along with co-founders Gideon, Thomas and Hayden Davis

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]]> https://earlybirdsinvest.com/us-court-blocks-57-million-in-usdc-amid-libra-token-disputes/feed/ 0 38991 Libra Scandal Task Force Disbanded—But Court Case Heats Up https://earlybirdsinvest.com/libra-scandal-task-force-disbanded-but-court-case-heats-up/ https://earlybirdsinvest.com/libra-scandal-task-force-disbanded-but-court-case-heats-up/#respond Wed, 21 May 2025 14:51:23 +0000 https://earlybirdsinvest.com/libra-scandal-task-force-disbanded-but-court-case-heats-up/

Argentina’s president, Javier Milei, has ended the official investigation into the Libra meme coin scandal, also known as Libragate.

A formal order signed on May 19 by President Milei and Justice Minister Mariano Cúneo closed the Investigation Task Unit (UTI). The statement claimed the group had “fulfilled its purpose”, though no clear explanation was given.

The task force had been gathering information on the Libra token, which gained sudden attention after President Milei promoted it on X in mid-February. That post led to a jump in Libra’s market value, which briefly reached $4.5 billion. However, the price suddenly dropped by over 97% within hours.

How to Avoid Major Crypto Investment Risks? (Beginner-Friendly)

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How to Avoid Major Crypto Investment Risks? (Beginner-Friendly)

How to Avoid Major Crypto Investment Risks? (Beginner-Friendly)
How to Avoid Major Crypto Investment Risks? (Beginner-Friendly)

Lawmakers from opposing parties criticized the decision. Julia Strada shared on X that the investigation unit was never meant to work properly.

Additionally, Lawmaker Maximiliano Ferraro posted on X that the administration was “doing everything it can to prevent the truth from coming out“.

However, according to a report from Clarín, a local media outlet, Judge María Servini continues her review and has ordered banks to provide financial records for several people connected to the Libra case. This includes President Milei, his sister Karina, Mauricio Novelli, Manuel Terrones Godoy, and Sergio Morales.

The judge’s request covers account history, investment activity, and any large or unusual asset changes starting from 2023.

Meanwhile, Caroline Crenshaw, the only Democrat currently serving on the US Securities and Exchange Commission (SEC), voiced concerns about the agency’s changing approach to crypto oversight. What did she say? Read the full story.

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Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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]]> https://earlybirdsinvest.com/libra-scandal-task-force-disbanded-but-court-case-heats-up/feed/ 0 37505 Judge targets central figures in LIBRA scandal with asset freeze; Milei’s financial ties under review https://earlybirdsinvest.com/judge-targets-central-figures-in-libra-scandal-with-asset-freeze-mileis-financial-ties-under-review/ https://earlybirdsinvest.com/judge-targets-central-figures-in-libra-scandal-with-asset-freeze-mileis-financial-ties-under-review/#respond Fri, 16 May 2025 21:04:08 +0000 https://earlybirdsinvest.com/judge-targets-central-figures-in-libra-scandal-with-asset-freeze-mileis-financial-ties-under-review/

An Argentine federal judge has ordered the freezing of assets belonging to key figures behind the LIBRA memecoin project as investigators examine potential fraud linked to the digital token’s promotion, including scrutiny of financial operations tied to President Javier Milei and his sister, Karina Milei, local media reported on May 15.

Judge María Servini issued the ruling on May 14 as part of a broader probe into a suspected pump-and-dump scheme involving LIBRA. The memecoin gained global attention after Milei publicly promoted it on social media in February.

The judge also authorized the lifting of banking secrecy protections for both Milei and his sister, allowing investigators to access their financial transaction history for signs of irregular ties to the project’s backers.

Surveillance footage fuels suspicion

On Feb. 14, Milei tweeted in support of LIBRA from his official account, describing it as a pathway to financial freedom. The endorsement triggered a wave of retail investment, which took the token’s market cap to over $4.5 billion.

However, the token’s price collapsed more than 85% and its liquidity vanished within days of the endorsing tweet, prompting allegations of market manipulation, insider profiteering, and systemic fraud. Public trust in Milei’s administration cratered after the scandal.

According to the case file, Novelli acted as a central figure in the scheme, facilitating connections between the presidential circle and Hayden Davis, a foreign financier who helped seed the project. Authorities have also issued an Interpol notice seeking Davis’ arrest.

Novelli rented a set of bank safety deposit boxes just 10 days before Milei’s tweet. Surveillance footage published by media outlets later showed Novelli’s mother and sister removing large bags from those boxes the morning after the endorsement went live.

According to a report by the Federal Police’s Anti-Money Laundering Division, the weight and handling of the bags suggest they may have been filled with large quantities of cash.

A local media report noted that the bags appeared empty upon arrival but were “visibly heavier” as the women exited, prompting suspicions of cash withdrawals tied to the LIBRA scheme.

Asset freeze and political fallout

Judge Servini’s asset freeze applies to Novelli, Manuel Terrones Godoy, and Sergio Morales, three individuals identified as central actors in the scheme.

The 90-day measure bars the sale or transfer of properties and vehicles to maintain the accused individuals’ financial footprint while prosecutors investigate alleged financial crimes.

LIBRA was marketed as a digital alternative for Argentines seeking to escape inflation and currency controls. Critics have since accused the project of operating without transparency and leveraging political influence to draw in unsuspecting investors.

Milei has denied any personal gain from the venture and deleted the tweet promoting LIBRA amid the backlash. The presidency has not responded to the latest judicial actions, but the investigation into financial links between his inner circle and the token’s promoters continues to escalate.

Opposition lawmakers are now calling for an independent inquiry into the president’s involvement and whether his public endorsement constituted abuse of office or market manipulation.

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