Argentina’s President Javier Milei is facing fraud allegations after promoting a cryptocurrency, $LIBRA, whose value collapsed shortly after his endorsement.
Milei, a libertarian leader, tweeted about the digital token on Friday, claiming that $LIBRA aimed to “encourage economic growth by funding small businesses and startups.” His tweet included a link to a website where users could purchase the cryptocurrency, which was developed by KIP Protocol. The domain name of the site, vivalalibertadproject.com, referenced a phrase Milei often uses, “long live freedom.”
However, the value of $LIBRA soon plummeted, leading to millions of dollars in losses for investors. The collapse has prompted lawyers in Argentina to file a fraud case against Milei, with one lawyer, Jonatan Baldiviezo, accusing the president of committing “an indeterminate number of frauds.” Baldiviezo and his colleagues suspect the incident may have been a “rug pull,” a type of cryptocurrency scam where developers disappear with investors’ funds.
“Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential,” Baldiviezo alleged. He also accused Milei of violating public ethics laws.
Political opponents of Milei have condemned the incident. Former President Cristina Kirchner suggested that Milei had acted as the “hook” for what she called a “digital scam,” while Esteban Paulón, a Socialist Party politician, announced plans to file for impeachment.
Milei defended himself, stating that he was unaware of the project’s details and removed the tweet after being informed. “I decided not to continue promoting it,” he said.
In response to the controversy, the President’s Office stated that the Anti-Corruption Office would investigate the matter. The office further added that all gathered information would be passed to the judiciary to determine if any individuals or companies involved in the KIP Protocol project had committed a crime.
