Overview
- U.S. District Judge Jennifer Rochon denied four funds’ Section 1782 bid as an overbroad fishing expedition, closing a New York avenue sought by Palladian Partners, HBK Master Fund, Hirsh Group and Virtual Emerald.
- The court found the evidence insufficient to show the $LIBRA assets are state property and said proceeds could plausibly have gone to Javier Milei, Karina Milei or Hayden Davis.
- Rochon emphasized that any targeted inquiries belong in English or Argentine courts and warned that Section 1782 cannot be used for speculative asset hunts against a sovereign.
- The decision cited an Argentine Anti-Corruption Office report deeming Milei’s promotion of $LIBRA a personal activity, a finding that undercuts claims of sovereign ownership.
- In Buenos Aires, a congressional commission moved to compel Karina Milei’s testimony, secured an appellate hearing for Oct. 28, and is seeking certified files and data on 74 virtual wallets after losses tied to the token were estimated at about US$251 million.