An Argentine federal judge has initiated a legal order to freeze 25 cryptocurrency wallets associated with the LIBRA memecoin scandal. This action shows the challenges of halting funds once they have been transferred on-chain. The success of this order now depends on cooperation from major exchanges and the actual availability of the funds in question.

Judge Marcelo Martínez de Giorgi has mandated identification and freezing measures for the wallets, which are distributed across prominent exchanges including Binance, Bybit, OKX, and Bitfinex. His order, reported by Clarín, is a significant step in an investigation that has garnered attention from law enforcement agencies in both Argentina and the U.S. since the LIBRA token's collapse in early 2025.

As part of the investigation, Judge Martínez de Giorgi requested detailed information including KYC records, IP addresses, and transaction histories from the exchanges involved. This information is critical for linking the wallets to identifiable individuals, although the responsiveness of these platforms remains uncertain.

According to a police report, substantial funds were moved shortly before the order was issued. Specifically, on May 10, a total of 498,539 USDT was transferred through an interoperability protocol to a Tron wallet, subsequently divided across 17 transactions to conceal its trail. Crypto analyst Fernando Molina estimated that approximately $8.2 million had been idle prior to these movements, but as of July 14, these funds have yet to be frozen.

Notably, four of the eight wallets belonging to the so-called “Libra Team” can be traced back to a wallet that has been frozen for nearly six months at the request of the U.S. Southern District of New York. This connection highlights the cross-border implications of the LIBRA case, reflecting increasing scrutiny over cryptocurrency operations.

The Argentine Federal Police's Cybercrime Technical Department played a key role in tracing these transactions. Their forensic work laid the groundwork for the judge’s order, illustrating the complexities of tracking cryptocurrency flows in a rapidly evolving environment.

This article is for informational purposes only and is not financial advice.