Milei Faces Fraud Accusations Over $LIBRA Cryptocurrency

Argentine lawyers have filed fraud complaints against President Javier Milei over his promotion of a cryptocurrency on social media, alleging his actions led to investor losses. The complaint, submitted to a criminal court on Sunday, accuses Milei of potential fraud and violation of public ethics laws.

On Friday, Milei posted on X about $LIBRA, a cryptocurrency he described as a tool for economic growth designed to support small businesses and startups. The digital currency, developed by KIP Protocol and Hayden Davis, was promoted via a website referencing Milei’s campaign slogan, "Viva la libertad." However, after facing public criticism, Milei deleted the post within hours. The cryptocurrency’s value subsequently plummeted, causing significant losses to investors.

In response to the backlash, Milei’s administration released a statement on Saturday clarifying that he had no role in the cryptocurrency’s creation. The statement explained that the post was removed to prevent further speculation and mitigate potential risks.

Lawyer Jonatan Baldiviezo, one of the plaintiffs, accused Milei of enabling a fraud scheme. He alleged that the president’s endorsement facilitated a “rug pull,” a scheme in the crypto industry where a project attracts investors before being abandoned, leading to a collapse in value. The complaint was co-signed by lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano, a former head of Argentina’s Central Bank.

Milei defended his actions, claiming he was unaware of the cryptocurrency’s details and deleted the post upon learning more about the project. He also suggested that political opponents were exploiting the incident to attack his administration.

The Argentine Anti-Corruption Office, an entity under the Executive Branch, announced it would investigate the case and forward its findings to the judiciary to determine if KIP Protocol or its affiliates engaged in fraudulent activities.

Hayden Mark Davis, a project representative who previously met with Milei, blamed the president for $LIBRA’s collapse. In a video statement, Davis accused Milei and his team of abruptly withdrawing their support, triggering the sharp decline in the cryptocurrency’s value.

The case is now under review by Argentine criminal courts, which will determine the next legal steps.