Argentinian President Javier Milei Faces Fraud Charges After Endorsing Crypto Token $LIBRA

Argentina President Javier Milei is facing criminal fraud charges from Argentine lawyers after promoting a cryptocurrency that collapsed in value.

On Friday, Milei posted on X about $LIBRA, highlighting its potential of “encouraging economic growth by funding small businesses and startups.”

Hours later, Milei deleted the post and the token's value plummeted, causing millions of dollars in losses. The President's Office issued a statement on the following day, claiming the post was deleted to “avoid speculation and limit further exposure” following public reaction to the project’s launch, and that Milei was not involved in the cryptocurrency's development.

The cryptocurrency was developed by KIP Protocol and Hayden Davis, and could be obtained through a link directing users to a website called vivalalibertadproject.com, a reference to Milei’s signature slogan, ¡Viva la libertad, carajo!"

"As a symbol of this movement and in honor of Javier Milei’s libertarian ideas, we are launching the $LIBRA token, designed to strengthen the Argentine economy from the ground up by supporting entrepreneurship and innovation," the website reads.
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"With this token, we aim to channel funding efficiently and in a decentralized manner, allowing investors and citizens to take part in Argentina’s growth."

Lawyer and plaintiff, Jonatan Baldiviezo, argued that the president’s actions constituted a serious legal violation, stating that an illicit association to commit “an indeterminate number of frauds” had occurred.

“Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential," Baldiviezo said.

Baldiviezo filed the petition alongside lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano, who previously led the Argentine Central Bank under former President Alberto Fernández. A judge is expected to be assigned to the case on Monday or refer it to a prosecutor for further investigation.

The lawsuit suggests that Milei’s involvement resembled a “rug pull” and that Milei violated Argentina’s Public Ethics Law.

Defending the president’s actions, the President’s Office stated: “The President shared a post on his personal accounts announcing the launch of KIP Protocol’s project, as he does daily with many entrepreneurs who wish to launch projects in Argentina to create jobs and attract investments.”

Milei also denied any wrongdoing, stating on X that he was unaware of the cryptocurrency’s development and suggesting political opponents were using the situation against him. “I was not aware of the details of the project, and after getting informed, I decided not to continue promoting it (which is why I deleted the tweet),” he wrote.

The administration further revealed that Milei and his team had met with KIP Protocol representatives at the presidential office. “All the information gathered in the investigation will be handed over to the judiciary to determine if any of the companies or individuals linked to the KIP Protocol project committed a crime,” the Milei administration said in the Saturday statement.

Davis however blamed Milei for the token's collapse, claiming, “Despite prior commitments, Milei and his team unexpectedly changed their position, withdrawing their support and deleting all previous posts on social media.”

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The case now moves to Argentina’s judicial system, where authorities will determine whether Milei’s involvement constituted a criminal offence.

Javier Milei Advocates Bitcoin, Currency Competition in Argentina’s Economy

In a recent statement, Milei emphasized his administration’s commitment to allowing citizens the freedom to transact with various currencies, including Bitcoin, without hindrance.

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