Argentine lawyers have filed fraud complaints against President Javier Milei in criminal court, alleging his promotion of a cryptocurrency led to financial losses for investors. The complaint follows Milei’s now-deleted post on X about $LIBRA, a coin purportedly designed to fund small businesses and startups.
Milei’s post was removed hours after publication, coinciding with a sharp decline in the cryptocurrency’s value, causing significant losses for investors, according to financial platform Dexscreener. The cryptocurrency was developed by KIP Protocol and Hayden Davis, and was accessible through a website referencing Milei’s signature phrase, “Viva la Libertad.”
The President’s Office stated that Milei was not involved in the currency’s development and deleted the post to prevent speculation and further exposure. However, lawyer Jonatan Baldiviezo, one of the plaintiffs, asserted that Milei’s actions constituted fraud. He, alongside lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano, filed the complaint, calling the incident a “rug pull,” a known fraudulent tactic in cryptocurrency markets.
Baldiviezo also claimed that Milei violated Argentina’s Public Ethics Law. The legal process is set to proceed with a judicial review and potential assignment to a prosecutor for further investigation.
In response, Milei stated he was unaware of the cryptocurrency’s development and blamed political adversaries for exploiting the situation. The President’s Office announced that Argentina’s Anti-Corruption Office would investigate the case, and any relevant findings would be submitted to the judiciary.
Hayden Mark Davis, a representative of KIP Protocol, accused Milei of abruptly withdrawing his support, leading to the cryptocurrency’s collapse. In a video statement, Davis criticized the administration’s handling of the situation.
The controversy highlights concerns over political figures engaging in cryptocurrency endorsements and the financial risks for investors involved in such projects.
