An advisor for Argentina’s National Securities Commission (CNV, by its Spanish acronym) resigned on Friday, three weeks after a prosecutor started investigating him over a potential role in the $LIBRA crypto scandal. Sergio Morales, who advised the CNV on “virtual assets and technology,” quit “for reasons of public knowledge,” sources close to the matter confirmed to the Herald.

Morales, together with Argentine businessmen Mauricio Novelli and Manuel Terrones Godoy, was present at a meeting President Javier Milei had with U.S. entrepreneur and $LIBRA creator Hayden Davis in October 2024. They had all met previously at Tech Forum, an event organized by the two businessmen in Buenos Aires. Julian Peh, a Singapur tech entrepreneur also involved in the $LIBRA launch, was present as well. A person who attended the event told the Herald that meetings with Milei were charged for.

Hours after the resignation, Argentine outlets reported that Morales and Novelli’s houses were raided following an order from prosecutor Eduardo Taiano.

On February 14, President Javier Milei backed a then-unknown cryptocurrency known as $LIBRA on X. He claimed the project would allow investors to fortify the Argentine economy by funding small businesses. The post also contained what is known as a “contract number” that allows would-be buyers to find the cryptocurrency, which was not listed on major trading platforms. 

The value of the token soared right out of the gates, eventually surpassing US$5, only to crater to virtually nothing over the next few hours. Thousands of investors lost millions of dollars.

Morales worked with the Secretary General of the Presidency, Karina Milei. Local media outlets revealed that he had also been named as “the official Web3/Blockchain advisor to Javier Milei” in a draft contract that included Davis.

Prosecutor Taiano is investigating Morales, Milei, Novelli, and Terrones Godoy over the crypto scandal.

Last June, Morales met with Novelli and Karina Milei in Casa Rosada. Four months later, he started to work in the CNV and participated in Tech Forum. Morales is also is part of an LLC, City Entertainment SRL, with Terrones Godoy.