Argentine Lawyers Accuse President Milei of Cryptocurrency Fraud

A group of Argentine legal experts has filed fraud complaints against President Javier Milei, alleging his promotion of a cryptocurrency led to significant investor losses. The controversy centers on a social media post Milei made about a digital coin called $LIBRA.

What Sparked the Allegations?

Last Friday, President Milei shared a post on his X (formerly Twitter) account promoting $LIBRA, claiming the coin would “encourage economic growth by funding small businesses and startups.” However, within hours, the tweet was deleted, and the coin’s value plummeted—resulting in millions of dollars in losses for its early investors, according to data from financial tracking site Dexscreener.

Details Behind the Cryptocurrency

The coin in question was developed by KIP Protocol in collaboration with Hayden Davis. Interested users were directed to a website named vivalalibertadproject.com, a nod to a popular phrase frequently used by Milei in his communications.

Legal representative Jonatan Baldiviezo, one of the attorneys behind the complaint, stated that the President’s post played a key role in an alleged “rug pull” scam—a common crypto fraud where creators inflate a token’s value and then abruptly withdraw their support, leaving investors with worthless assets. Baldiviezo, along with fellow lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and former Central Bank head Claudio Lozano, claims that Milei’s actions were instrumental in orchestrating this alleged fraud.

Presidential Response and Clarifications

In an official statement, the President’s Office maintained that President Milei was not directly involved in developing the cryptocurrency. They explained that the post was removed once concerns about potential market speculation arose. Milei later took to X, explaining he was unaware of the project’s intricate details and attributing the incident to efforts by his political adversaries to undermine him.

Additionally, the administration confirmed that representatives from KIP Protocol had met with the President’s team at the presidential office. The Anti-Corruption Office is also set to review the matter, with further details expected as the investigation unfolds.

Criticism from the Crypto Community

Hayden Mark Davis, one of the KIP Protocol representatives, criticized the President, claiming that Milei’s sudden withdrawal of support directly contributed to the cryptocurrency’s collapse. Davis emphasized that the unexpected reversal not only harmed investors but also disrupted prior commitments made by the project.

What’s Next?

Argentine criminal justice authorities are set to assign a judge or refer the case to a prosecutor for further investigation. As the legal process unfolds, the incident has sparked broader debates about the responsibilities of public figures in endorsing digital assets and the need for tighter regulation in the rapidly evolving cryptocurrency market.

This case could have significant implications for both political communications and investor protection in Argentina’s digital economy.