Argentina's fintech chamber raised concerns that the sudden February 2025 LIBRA cryptocurrency collapse could constitute a rug pull scam targeting crypto investors

Overview Debates Related claims Topics Sources

Investors deposited $1.16 billion in digital assets into NovaTech's wallet between August 2019 and May 2023, but NovaTech sent only $26 million to its trading provider B2Broker

Before launching NovaTech in 2019, the Petions promoted AWS Mining, a crypto mining scheme promising 15% to 20% monthly returns that collapsed in 2019

Federal Judge Marcelo Martínez de Giorgi cleared Karina Milei, General Secretary of the Presidency of Argentina, finding no evidence she received payments to arrange meetings for LIBRA creators

NovaTech falsely advertised itself as a registered hedge fund broker licensed to trade crypto in the United States, promising returns of 2% to 4% weekly

NovaTech targeted Haitian and immigrant communities worldwide using ads in Haitian Creole, social media, and WhatsApp prayer groups

NovaTech's traders lost approximately $18.2 million of the $26 million sent for trading, using incoming deposits from new investors to pay out weekly returns and recruitment bonuses

The October 23, 2026 court decision dismissed criminal fraud investigations against U.S. launch adviser Hayden Davis, as well as associates Mauricio Novelli and Manuel Terrones Godoy

Cynthia Petion, the sole authorized user on NovaTech's investor account, authorized withdrawals of at least $134.5 million to wallets belonging to herself and Eddy Petion

Blockchain researchers identified approximately $99 million withdrawn from LIBRA liquidity pools through eight digital wallets linked to the cryptocurrency's creator

More than 11,000 New Yorkers put money into NovaTech and AWS Mining before NovaTech collapsed in May 2023 and locked investors out of withdrawals

On October 23, 2026, Argentine Federal Judge Marcelo Martínez de Giorgi dismissed the criminal fraud investigation against Argentine President Javier Milei over the February 2025 LIBRA memecoin collapse, officially closing proceedings without reversing investor financial losses

On February 14, 2025, Argentine President Javier Milei promoted the LIBRA memecoin in a post on X, triggering a rapid increase in the token's market price

Argentine law enforcement authorities initiated a criminal investigation to examine potential fraud and the involvement of individuals associated with the February 2025 LIBRA memecoin launch

Argentine President Javier Milei stated he acted in good faith when sharing LIBRA and accused political rivals of attempting to exploit LIBRA's token collapse

U.S. businessman Hayden Davis acknowledged holding nearly $100 million following LIBRA's collapse but denied any criminal wrongdoing in connection with the LIBRA token launch

Argentine Prosecutor Eduardo Taiano formally requested the dismissal of the criminal fraud investigation into President Javier Milei's promotion of the LIBRA memecoin

Following Argentine President Javier Milei's February 14, 2025 X post, the LIBRA memecoin experienced a sharp price surge followed by a complete collapse within hours

Argentine President Javier Milei deleted his X post promoting LIBRA shortly after sharing it, denying direct ties or detailed knowledge of the LIBRA cryptocurrency project

New York investors lost tens of millions of dollars after putting money into NovaTech and the Petions' AWS Mining scheme

On the launch day of PaperTrade, a trader executed $10 million to $20 million market orders on Hyperliquid to move Ethereum perpetual prices