- Milei faces fraud charges after promoting LIBRA, which quickly collapsed.
- Developers withdrew $107 million, leading to accusations of fraudulent behavior.
- The incident raises fears of unregulated assets, prompting calls for stricter regulations.
Argentina’s President Javier Milei is under fire after promoting a cryptocurrency called LIBRA. The token tanked shortly after his endorsement, and now he’s facing serious blowback.
Opposition lawmakers, like Leandro Santoro, are even pushing for President Milei’s impeachment, pointing to potential wrongdoing in the situation.
News from Associated Press lawyers in Argentina have filed fraud charges against the president. They accuse him of promoting LIBRA, a token they say was involved in a “rug pull” scam. This is where developers pump up a crypto’s price, then bail out, leaving regular investors with nothing.
Jonatan Baldiviezo, a lawyer and plaintiff, put it bluntly, “Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential.”
Related: Argentina President Milei Backpedals on LIBRA Meme Token After 89% Plunge in Value
Milei Pitched LIBRA as Economic Fix
On February 14, 2025, Milei took to the social media platform X, and talked up LIBRA. He called it a private venture that would boost Argentina’s struggling economy, especially for small businesses.
After his post, LIBRA’s value shot up, reaching a market cap of $4.56 billion. But the excitement didn’t last long. Within hours, the token crashed, losing over 90% of its value and wiping out more than $4 billion in market cap.
Investigations later showed that the team behind LIBRA, specifically linked to KIP Protocol, withdrew over $107 million in liquidity shortly after the coin’s launch. However, the President’s Office said that Milei had no involvement in any part of the cryptocurrency’s development.
“The President shared a post on his personal accounts announcing the launch of KIP Protocol’s project, as he does daily with many entrepreneurs who wish to launch projects in Argentina to create jobs and attract investments,” the statement said.
Crypto Community Fears Stricter Regulations
Milei, who has been viewed as a libertarian leader and a staunch advocate for free-market capitalism, is now getting hammered for his role in this mess.
His endorsement of the cryptocurrency and its collapse has sparked further concerns about the risks associated with unregulated digital assets.
Related: Central African Republic’s CAR Memecoin Launch Marred by Deepfake Claims & Suspended Domain
Critics argue incidents like this give regulators more reasons to step in.
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