President Milei Accused of Cryptocurrency Fraud
Argentine lawyers have filed a fraud complaint against President Javier Milei, alleging his promotion of a cryptocurrency led to significant financial losses for investors. The charges, filed in criminal court on Sunday, claim that Milei’s endorsement of the $LIBRA token on social media misled investors, resulting in millions of dollars in losses. According to financial site Dexscreener, the currency’s value plummeted after Milei deleted his post just hours after sharing it.
The cryptocurrency, developed by KIP Protocol and entrepreneur Hayden Davis, was marketed as a tool to stimulate economic growth by supporting small businesses and startups. Investors could access it through a website named “vivalalibertadproject.com,” a phrase closely associated with Milei’s political messaging. The President’s Office issued a statement on Saturday distancing Milei from the coin’s development, saying he deleted the post to prevent speculation. However, critics argue that his promotion significantly influenced the public’s perception of the currency, ultimately leading to its dramatic collapse.
Legal Action and Accusations Against Milei
Lawyer Jonatan Baldiviezo, one of the plaintiffs, stated that the case represents an “illicit association to commit an indeterminate number of frauds,” withJavier Milei’s actions playing a crucial role in the alleged scheme. Baldiviezo, alongside fellow lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano, who formerly led Argentina’s Central Bank, officially filed the complaint. The judiciary is expected to assign a judge or prosecutor to the case for further investigation.
The plaintiffs claim that Milei’s actions resemble a “rug pull”—a term used in the cryptocurrency sector to describe projects where developers lure investors with an appealing token only to abandon it after funds are raised, rendering the tokens worthless. Additionally, Baldiviezo contends that Milei’s conduct violated Argentina’s Public Ethics Law. In response, Milei’s administration denied any wrongdoing, emphasizing that he frequently promotes entrepreneurial initiatives in the country and that he withdrew support for $LIBRA upon learning more about the project.
Political Fallout and Official Response
Following the controversy, Javier Milei took to social media to reject accusations of fraud, blaming his political opponents for trying to exploit the situation. He claimed he was unaware of the details of the cryptocurrency’s development and removed his endorsement once he learned more. The President’s Office further stated that the Anti-Corruption Office would conduct an investigation and cooperate with the judiciary to determine if any crimes were committed by KIP Protocol or its affiliates.
Adding to the dispute, Hayden Mark Davis, a representative of KIP Protocol, accused Milei of directly causing the currency’s collapse. In a video posted on social media, Davis claimed that Javier Milei and his team had initially supported the project but later withdrew their endorsement unexpectedly, deleting all related posts.
The controversy has sparked significant public debate, raising concerns about the intersection of politics and financial endorsements. As legal proceedings advance, the case could have broader implications for political figures engaging in cryptocurrency promotion and financial responsibility in Argentina’s digital economy.
