Argentine President Milei Faces Fraud Charges Over $LIBRA Cryptocurrency
In a controversial development, Argentine lawyers filed fraud complaints against President Javier Milei on Sunday, accusing him of promoting a cryptocurrency called $LIBRA on his social media. The complaints, filed in criminal court, allege that Milei’s actions were integral to a scheme that led to significant financial losses for investors in the currency. The incident has quickly escalated into a legal and political issue, attracting national attention and stirring up debates about public figures’ roles in endorsing digital assets.
The controversy began on Friday when Milei posted a message on X (formerly Twitter) about $LIBRA, a new cryptocurrency he claimed would stimulate economic growth by supporting small businesses and startups. The post, however, was deleted just a few hours later. Financial platform Dexscreener reported that the deletion triggered a sharp collapse in the value of the coin, resulting in millions of dollars in losses for its short-lived investors.
$LIBRA was created by the KIP Protocol, a project led by Hayden Davis. The cryptocurrency could be accessed via a link directing users to a website called vivalalibertadproject.com, a name that aligns with a well-known phrase used by Milei in his speeches. Despite the initial excitement surrounding the coin, the subsequent price drop and the president’s involvement in promoting it raised alarms.
In response to the backlash, the President’s Office issued a statement on Saturday, asserting that Milei had no involvement in the cryptocurrency’s development. The statement clarified that the post was removed to avoid further speculation and limit the project’s exposure after it attracted negative attention.
However, legal experts and plaintiffs are pursuing a case against the president, arguing that his actions constituted a “rug pull”—a fraudulent practice in the crypto world where developers lure investors with promising tokens, only to abandon the project once funds are inflated, leaving investors with worthless assets. Lawyer Jonatan Baldiviezo, one of the plaintiffs, argued that Milei’s actions were central to the fraudulent activity. He suggested that an illicit association to commit fraud was formed, and the president’s promotion of the cryptocurrency played a pivotal role.
Baldiviezo’s petition, signed with other key figures, including economist Claudio Lozano and engineer María Eva Koutsovitis, will be reviewed by the criminal justice system, which will determine whether further investigation is warranted.
Following the fallout, Milei denied any wrongdoing, stating on X that he was unaware of the details of $LIBRA’s development. He blamed political opponents for exploiting the situation. The president also emphasized that after learning more about the project, he decided to delete his social media post.
The incident has ignited a broader debate about the role of political figures in endorsing digital currencies. As the investigation continues, the Argentine government’s Anti-Corruption Office has pledged to take action and is expected to forward all collected information to the judiciary to determine whether any laws were violated.
Hayden Mark Davis, a representative of the KIP Protocol, expressed his frustration with the president’s decision to distance himself from the project. He suggested that Milei’s withdrawal of support contributed to the downfall of $LIBRA, further complicating the matter.
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