Argentine lawyers filed criminal fraud charges against President Javier Milei on Sunday following his promotion of the $LIBRA cryptocurrency on social media. The coin, developed by KIP Protocol and Hayden Davis, collapsed hours after Milei deleted his endorsement post, costing investors millions according to market tracker Dexscreener.
Milei initially touted $LIBRA as a tool for economic growth through small business funding, linking to the 'Viva la Libertad' project website. Critics argue this constitutes a rug pull – a scheme where developers abandon projects after inflating token values. Lawyer Jonatan Baldiviezo states:
The president's actions were essential to this series of frauds. This is textbook illicit financial association.
The administration denies involvement, claiming Milei removed the post to prevent speculation following public backlash. However, key details complicate this narrative:
- Milei met with KIP Protocol representatives days before the launch
- The President's Office confirmed reviewing project information pre-release
- Central Bank leadership under prior governments joined the lawsuit
KIP Protocol co-founder Hayden Davis countered in a viral video:
We had commitments until Milei abruptly withdrew support. His actions directly caused the crash.
Legal experts highlight potential violations of Argentina's Public Ethics Law governing official endorsements. The Anti-Corruption Office promises swift investigation as prosecutors prepare Monday's case assignments. With economic instability plaguing Argentina, this scandal threatens Milei's libertarian reform agenda amid growing crypto regulation debates.
