Argentine President Javier Milei confronts escalating legal challenges after lawyers filed criminal fraud charges tied to his promotion of the $LIBRA cryptocurrency. The token’s value plummeted following Milei’s now-deleted social media endorsement, erasing millions in investments within hours.
The controversy began when Milei promoted $LIBRA on X (formerly Twitter), describing it as a tool to “fuel economic growth by funding startups.” Hours later, he removed the post, causing the coin’s value to crash by 80%, according to Dexscreener data. Investors who purchased through vivalalibertadproject.com—a site mirroring Milei’s political slogan—report catastrophic losses.
This was a planned rug pull scheme where the president’s role was indispensable,said lawyer Jonatan Baldiviezo, one of four plaintiffs. His endorsement legitimized the token before its abrupt collapse.
Milei’s administration denied involvement in $LIBRA’s development, claiming the post was deleted to “prevent speculation.” However, meetings between KIP Protocol developers and presidential staff—acknowledged in an official statement—raise questions about transparency.
Legal experts argue Milei violated Argentina’s Public Ethics Law by merging governmental authority with private financial ventures. Hayden Davis, a KIP Protocol representative, accused Milei of reneging on commitments:
The president’s sudden withdrawal destroyed trust and triggered the crash,Davis stated in a viral video.
The Anti-Corruption Office has launched an investigation, with findings to be shared with judiciary authorities. Analysts note the case highlights broader risks of politicians endorsing volatile assets, particularly in Argentina’s unregulated crypto market.
Key developments include:
- Rug pull accusations mirroring notorious crypto exit scams
- Milei’s contradictory claims of ignorance despite project meetings
- Mounting pressure to clarify leaders’ roles in financial promotions
As Argentina grapples with economic instability, this scandal threatens Milei’s libertarian reform agenda. Investors now question whether populist crypto projects can coexist with ethical governance—a debate resonating globally amid rising digital asset adoption.
