Crypto Scandal Rocks Argentina: President Milei Accused of Fraud

From Boom to Bust: Milei Under Fire for Promoting Cryptocurrency That Crashed
Javier Milei and the Crypto Debacle: Fraud Accusations Shake Argentina’s Leadership
“Rug Pull” or Misunderstanding? Milei in Hot Water Over $LIBRA Coin Collapse
Tweet, Delete, and Collapse: Milei’s Crypto Post Sparks Fraud Allegations

MONTEVIDEO, Uruguay (AP) – Argentine lawyers have filed fraud complaints against President Javier Milei in criminal court, accusing him of promoting a cryptocurrency that later collapsed, causing investors to lose millions.

On Friday, Milei posted on X about $LIBRA, a digital currency he claimed aimed to boost economic growth by funding small businesses and startups. However, within hours, he deleted the post, and the coin’s value plummeted. According to financial platform Dexscreener, this led to significant financial losses for investors.

The cryptocurrency was developed by KIP Protocol and Hayden Davis and was accessible through a website named vivalalibertadproject.com, a reference to Milei’s signature slogan.

Fraud Allegations & Legal Action
Lawyer Jonatan Baldiviezo, one of the plaintiffs, told The Associated Press that the case involves “an illicit association to commit fraud.” He claims Milei’s actions were essential in executing what is known in the crypto world as a “rug pull”—a scheme where a token is hyped to attract investors, only to be abandoned, rendering the coins worthless.

Baldiviezo, alongside lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano (former head of Argentina’s Central Bank under President Alberto Fernández), filed the complaint. The judiciary is expected to assign a judge or refer the case to a prosecutor for investigation on Monday.

Milei’s Response & Government Defense
The President’s Office released a statement on Saturday, denying Milei’s involvement in the cryptocurrency’s development. It stated that he deleted the post to prevent speculation and further losses.

“The President frequently promotes entrepreneurial projects to encourage job creation and investments in Argentina. This was no different,” the statement read.

Milei defended himself on X, claiming he was unaware of $LIBRA’s development details. He accused political opponents of using the situation against him.

“I was not informed about the project’s specifics. Once I learned more, I decided to stop promoting it—hence, I deleted the tweet,” Milei wrote.

The government also confirmed that Milei and his administration recently met with KIP Protocol representatives, but assured that Argentina’s Anti-Corruption Office would investigate the matter. Any findings will be handed over to the judiciary to determine if criminal activity occurred.

KIP Protocol’s Response
Hayden Mark Davis, a KIP Protocol representative who met with Milei, blamed the president for the cryptocurrency’s downfall. In a video posted on social media, Davis accused Milei of backtracking on prior commitments and withdrawing support, which he says directly led to the coin’s collapse.

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