An Argentine judge has been assigned to investigate allegations of fraud against President Javier Milei after he briefly promoted a cryptocurrency that collapsed within hours of its launch last week. The coin, called $LIBRA, initially surged in value but quickly plummeted, causing millions of dollars in losses for investors.
Milei Distances Himself from the Controversy
President Milei has denied any involvement with the creators of $LIBRA, stating that he acted in good faith when he mentioned it on social media. He initially promoted the project on Friday, February 16, describing it as an initiative to support small businesses and startups in Argentina. However, as criticism grew and concerns about a possible scam surfaced, he deleted the post within hours.
His office later clarified that the president had no role in developing the cryptocurrency and that he removed his post to avoid speculation and prevent further damage.
The Investigation Begins
On Monday, February 19, Judge Maria Servini of Federal Court No. 1 in Buenos Aires was assigned to oversee the case. The investigation follows multiple fraud complaints filed by Argentine lawyers, who argue that Milei’s endorsement of $LIBRA misled the public and contributed to financial losses. There is no deadline for Servini to complete the investigation, leaving the timeline open-ended.
How the Crypto Crash Unfolded
When $LIBRA was launched, it briefly reached a market capitalization of over $4 billion. However, its value quickly plummeted after critics suggested it might be a scam. Investors who bought in early suffered heavy losses as the price dropped sharply.
The cryptocurrency was developed by KIP Protocol and Hayden Davis and could be purchased through a website called vivalalibertadproject.com—a reference to Milei’s famous phrase, “Viva la libertad!” which he often uses in speeches and on social media.
What’s Next?
With the investigation now underway, it remains to be seen whether Milei will face any legal consequences or if he will be cleared of wrongdoing. For now, his administration maintains that he had no connection to the cryptocurrency’s developers and that his post was simply an expression of support for innovation and entrepreneurship.
This case could have significant implications for crypto regulations in Argentina and how public figures promote digital assets in the future.
