Argentine President Javier Milei is facing fraud charges following his promotion of the LIBRA cryptocurrency, which briefly surged to a $4 billion market cap before crashing nearly 96% within hours.
📌 The charges, filed Sunday in an Argentine criminal court, were brought by attorneys and political opponents, including former Argentine Central Bank head Claudio Lozano, according to the Associated Press.
📌 The complaint alleges that Milei and the team behind LIBRA, including Kelsier Ventures and CEO Hayden Davis, were involved in fraudulent activity.
🚨 As traders and regulators raise red flags, the controversy continues to unfold, sparking broader discussions about political endorsements in crypto.
LIBRA Crypto Crash: How It Unfolded
🔹 On Friday, Milei promoted the LIBRA token via his official X account, linking to the Viva La Libertad Project website.
📌 In his now-deleted post, Milei described the project as a private initiative to boost the Argentine economy by funding small businesses and startups.
🔹 LIBRA’s price skyrocketed immediately after launch, pushing its market cap past $4 billion.
🔹 However, within hours, concerns over the project’s legitimacy led to a massive sell-off, causing an 89% price drop.
📌 Crypto analytics firms Bubblemaps and Chainalysis flagged several red flags, including:
✅ 82% of the LIBRA supply controlled by a single cluster of wallets.
✅ Massive liquidity removal from the project’s pools.
✅ $87 million in USDC and SOL reportedly cashed out by insiders.
🚨 With investors rushing to exit, LIBRA lost nearly all of its value, dropping more than 96% from its peak.
Milei Denies Involvement—Deletes LIBRA Promotion Post
📌 As LIBRA imploded, Milei quickly deleted his original post and attempted to distance himself from the project.
📌 In a follow-up statement, he denied any connection to LIBRA, writing:
“A few hours ago I posted a tweet, as I have countless times before, supporting an alleged private venture with which I obviously have no connection. I wasn’t informed of the project’s details, and after learning about them, I decided not to continue promoting it (that’s why I deleted the tweet).”
🚨 However, the damage was already done, with critics accusing Milei of recklessly endorsing a highly speculative crypto asset.
Fraud Charges Filed Against Milei Over LIBRA Controversy
📌 The fraud complaint alleges that LIBRA’s developers engaged in deceptive practices with Milei’s involvement being “essential” to the alleged scheme.
📌 Attorney Jonatan Baldiviezo, one of the plaintiffs, stated:
“Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential.”
🔹 An Argentine court is expected to assign a judge to oversee the case or refer it to a prosecutor as early as Monday.
🚨 Legal experts believe this could set a precedent for political figures endorsing cryptocurrencies and facing accountability for their involvement.
Conclusion: LIBRA Scandal Sparks Calls for Crypto Regulation
📌 Argentine President Milei is facing fraud charges after endorsing the LIBRA cryptocurrency.
📌 LIBRA skyrocketed past $4 billion in market cap before crashing 96% due to insider activity.
📌 Crypto analytics firms flagged suspicious wallet activity, triggering investor panic.
📌 Milei deleted his post and denied involvement, but legal proceedings are now underway.
📌 The case raises concerns about political figures promoting crypto assets without due diligence.
🚀 With global regulators watching closely, will this incident lead to stricter oversight on crypto endorsements by public figures?
