Argentina is caught in a huge crypto controversy, with President Javier Milei at the center of a legal mess. It all began when Milei posted about LIBRA, a new cryptocurrency, on X. His support sent the token from $0.006 to almost $5 in just a few hours. Many investors assumed the project had government backing and rushed to buy in. But the excitement didn’t last—six hours later, LIBRA’s price crashed to $0.84, wiping out billions and causing panic.
Lawyers File Fraud Charges
The sudden crash led to immediate legal action. Argentine lawyers Jonatan Baldiviezo and Marcos Zelaya filed fraud charges against Milei, arguing that his promotion of LIBRA misled investors. They claim his post tricked investors and compare the situation to a “rug pull,” a common crypto scam where developers promote a token before abandoning it, leaving investors with huge losses.
The law firm Burwick Law also insisted the investors reach out to them in case they want assistance in crypto loss.
Assuming the complications, Milei quickly deleted his post and denied knowing anything about LIBRA’s creation. His team released a statement saying they removed the post to stop speculation. But legal experts argue that the damage was already done. Now, Argentina’s judiciary will decide if Milei and his team misled investors.
Questions of Insider Trading
The situation became even more suspicious when Jupiter Exchange admitted that some of its team members had known about LIBRA’s launch weeks before Milei’s post. According to them, private groups were already discussing an “Argentina Coin.” While Jupiter denied any insider trading, the revelation raised concerns that certain people may have made secret profits before the crash.
Meanwhile, Kelsier Ventures CEO Hayden Davis, one of LIBRA’s biggest supporters, blamed Milei for the token’s collapse. He claimed the president’s team had promised to support the project but later backed out, shaking investor confidence. Davis denied any fraudulent activity and said he still controlled $100 million in LIBRA funds, which he plans to reinvest and use to buy back and burn tokens to restore value.
What Happens Next?
Argentina’s Anti-Corruption Office is now investigating whether any crimes were committed. Whether Milei manages to clear his name or faces serious legal trouble remains uncertain. Raising doubts, Argentina’s government officials confirmed that President Javier Milei met with KIP Protocol executives Mauricio Novelli and Julian Peh in October 2024 to discuss a blockchain initiative. Later, in January 2025, Milei also met with Hayden Davis, a key figure behind LIBRA, though the government insists he had no official ties to the state. Milei’s team denied fraud charges, claiming it was a routine social media post to support entrepreneurs, not an official government project.
However, the Anti-Corruption Office remains unconvinced and has assembled a special task force of crypto, finance, and anti-money laundering experts to investigate potential fraud or misconduct. The government has pledged to hand over all findings to the courts, but with lawsuits piling up and investors outraged, Milei’s presidency hangs in the balance.
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