Libra probe intensifies as $500k Kraken transfer linked to Milei meeting under scrutiny

A transaction tied to Hayden Davis, a key figure in the Libra cryptocurrency project, has emerged as a focal point in an ongoing investigation into the token’s launch. The transfer, which moved approximately $500,000 to Kraken—a centralized exchange that maintains Know-Your-Customer (KYC) records—occurred simultaneously with a meeting between Davis, fellow Libra promoter Mauricio Novelli, and Argentine President Javier Milei on January 30. Presidential meeting records confirm the gathering aimed to “analyze blockchain and decentralized technologies,” though investigators are now scrutinizing whether the timing and scale of the transaction suggest deliberate coordination to obscure financial activities [1].

The transaction has intensified scrutiny of Libra, a stablecoin initiative backed by Meta and a consortium of tech and financial firms before its dissolution in 2024. Argentine prosecutors are reportedly seeking Kraken’s cooperation to identify the wallet’s owner and assess potential ties to the project. Local media highlight that the payment coincided with similar transfers made hours after the meeting, raising concerns about attempts to bypass regulatory compliance measures. The probe, which spans U.S. and Argentine jurisdictions, has already identified discrepancies in testimonies from project stakeholders, and the new data could accelerate its progress [1].

President Milei’s involvement has further complicated the case. While he previously asserted that his social media comments about Libra were made as a private individual, a recent court ruling deemed these actions attributable to his official role, potentially exposing him to legal liability. The transaction’s timing—during a high-level governmental discussion—has led analysts to question whether it reflects strategic financial maneuvers to obscure liabilities or mislead oversight bodies. A spokesperson for a FinTech regulatory group noted that such loopholes are “often exploited in cross-border digital currency operations,” emphasizing the transaction’s potential to form a basis for legal action if it demonstrates deliberate AML protocol evasion [1].

The case underscores broader challenges in regulating decentralized finance. Centralized exchanges like Kraken, which are subject to stringent compliance rules, have become critical nodes in investigations into digital currency projects. Regulators are examining whether these platforms facilitated transactions that circumvented standard verification processes—a practice that could violate U.S. and international financial regulations. Anonymous sources familiar with the probe suggest the transaction “adds a new layer to the narrative,” potentially clarifying inconsistencies in earlier statements from project executives. Internal documents obtained during the investigation indicate Meta’s legal team was aware of risks tied to third-party exchange partnerships, though the company has not publicly commented on the findings [1].

As investigations continue, the Libra case highlights the evolving regulatory landscape for cryptocurrency. The analysis of this transaction could set precedents for addressing similar cases, particularly as cross-border collaborations in the sector grow. For now, the focus remains on whether the transaction implicates key stakeholders or reveals systemic compliance failures in the project’s financial architecture. With amicus curiae briefs urging direct interrogation of Milei and probes advancing in multiple jurisdictions, the case remains a high-stakes test for the intersection of blockchain technology and regulatory oversight [1].

Source: [1] [Libra Case: Mysterious Transaction Might Help Advance Ongoing Probe] [https://news.bitcoin.com/libra-case-mysterious-transaction-might-help-advance-ongoing-probe/]