Following his support of the $ LIBRA cryptocurrency, which saw a rapid surge before declining in value, Argentine President Javier Milei has come under legal hot fire. Alleging that Milei’s actions mislead investors and result in major financial losses, Argentinean lawyers have filed fraud accusations.
Milei’s promotion of $ LIBRA on social media—presenting it as an effort to help small businesses and stimulate economic development—started the debate. The token shot to a market valuation of $4.56 billion following the post. But Milei erased the message hours later, and the value of the token dropped by more than 90%, causing public indignation and legal action.
Along with engineer María Eva Koutsovitis and economist Claudio Lozano, lawyers Marcos Zelaya and Jonatan Baldiviezo have initiated a criminal case claiming Milei’s assistance was vital in the claimed fraud. They say the president broke Argentina’s Public Ethics Law, which calls for public official responsibility and openness. Baldiviezo says, “Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential.”
Separately, attorney Agustín Rombolá has complained to Milei, alleging financial misbehavior involving conflicts of interest and price manipulation. Apparently, Rombolá’s company is getting ready to file a class-action lawsuit on behalf of investors who lost money because the token collapsed.
Milei responds to the accusations by saying he approved of the token without knowing its intricacies and erased his post once he found more. The President’s Office has announced an internal inquiry by the Anti-Corruption Office and stated that they will present the results to the court.
Additional investigation has turned to KIP Protocol, the blockchain company connected to the coin, which claims to have simply given technical support and did not establish or oversee $LIBRA. Reports indicate that KIP Protocol registered the token’s website just hours before its release, raising doubts about the initiative’s validity.
Opposing politicians have jumped on the issue; MP Leandro Santoro calls for Milei’s impeachment over the incident. The matter now advances via Argentina’s court system, where a judge will decide on the course of the next legal actions.
