Argentine President Javier Milei faces escalating legal turmoil as federal judge María Servini initiates a fraud probe tied to his brief endorsement of the $LIBRA cryptocurrency last week. The controversial digital asset collapsed hours after Milei promoted it on social media, erasing millions in investor funds.
Milei endorsed $LIBRA in a Friday tweet, calling it a tool to encourage economic growth through startup funding. Within hours, the coin surged to $4 billion market capitalization before plummeting amid accusations of fraud. The president deleted his post as panicked investors scrambled to limit losses.
I acted in good faith to highlight entrepreneurial projects,Milei declared during a televised interview, distancing himself from developers KIP Protocol and Hayden Davis. His administration maintains he had no involvement in development stages of the cryptocurrency.
Legal complaints filed Sunday allege presidential collusion in an illicit association enabling financial fraud. Lawyer Jonatan Baldiviezo argues Milei’s promotional tweet provided essential credibility:
The president’s actions created the conditions for mass deception.
The court investigation unfolds as Argentinians grapple with:
- Mounting skepticism toward cryptocurrency reforms
- Political fallout for Milei’s libertarian government
- Demands for stricter crypto-sector regulations
Analysts note the scandal threatens Milei’s anti-establishment credentials amid Argentina’s 292% inflation rate. While the Anti-Corruption Office launches its inquiry, critics question the timing - $LIBRA’s launch coincided with Milei’s controversial economic deregulation package.
Market volatility remains central to the debate. Milei defended investors as volatility traders understanding risks, but plaintiff documents suggest many buyers interpreted his endorsement as institutional approval. The disputed vivalalibertadproject.com portal remains offline as legal teams review transaction records.
Judge Servini’s open-ended investigation could span months, prolonging scrutiny of Milei’s crisis management. With no deadline for resolution, the case tests Argentina’s capacity to regulate digital assets while protecting citizens from financial schemes.
