Argentine President Faces Legal Action Over LIBRA Cryptocurrency Promotion
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Argentine President Javier Milei is under legal scrutiny after he endorsed the LIBRA cryptocurrency, which surged in value before collapsing.
Fraud Allegations Against Milei
On February 14, Milei promoted LIBRA on social media, leading to a rapid increase in its market capitalization, reaching $4.56 billion. However, when he deleted his post, the token lost over 94% of its value, triggering accusations of LIBRA fraud.
Following this, a report by the Associated Press revealed that Argentine lawyers Marcos Zelaya and Jonatan Baldiviezo, engineer María Eva Koutsovitis, and economist Claudio Lozano filed a criminal complaint against Milei.
They claim he was involved in fraud by promoting the cryptocurrency without proper disclosure. Baldiviezo stated, “Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential.”
The complaint also alleges that the Argentine President may have violated Argentina’s Public Ethics Law, which mandates government officials to disclose their assets and conflicts of interest.
In a separate case, lawyer Agustín Rombolá, a member of the political party Unión Cívica Radical and founder of the Rombola Mangione law firm, has also filed a complaint against Milei.
Rombolá accused him of “fraud, negotiations incompatible with public office, price manipulation, and financial crimes.”
ACABO DE DENUNCIAR A @JMILEI 🇦🇷
Estafa, negociaciones incompatibles con la función pública, manipulación de precios y delitos financieros.
Además, estamos confeccionando una acción de clase para defender los ahorros de la gente.
Se acabó la joda. Nos vemos en Tribunales. pic.twitter.com/vBeOMKltFI
— Agustín Rombolá (@agustindrombola) February 16, 2025
Additionally, he announced that his firm is preparing a class-action lawsuit on behalf of investors who suffered losses from the LIBRA crash.
Political Fallout and Government Response
The LIBRA fraud controversy has also sparked a political backlash.
Opposition lawmaker Leandro Santoro has called for President Milei’s impeachment, arguing that his involvement in the cryptocurrency’s promotion and subsequent crash represents a severe breach of public trust.
In response, Milei has requested an investigation by Argentina’s Anti-Corruption Office into himself and other government officials.
The presidential office released a statement claiming that Milei was unaware of the details of the project when he promoted it and had no ties to the company behind LIBRA.
The statement also confirmed that Milei met with representatives from KIP Protocol, the tech consultancy linked to LIBRA, in October 2023 to discuss the blockchain initiative.
Meanwhile, Hayden Mark Davis, an entrepreneur associated with LIBRA, has accused Milei of “betrayal” for withdrawing his endorsement, which Davis claims led to panic selling and the token’s collapse.
The LIBRA project has also raised red flags, with analysts pointing out that its website domain was registered only hours before the token launch, and no clear ownership information is available.
The LIBRA fraud case comes at a time when global regulators are increasing scrutiny on the cryptocurrency industry.
Recently, Binance, the world’s largest crypto exchange, agreed to a record $4.3 billion settlement for violating financial laws, including failing to prevent money laundering. U.S. Attorney Tessa M. Gorman emphasized that this case proves crypto companies can be held accountable if they break the rules.
As authorities tighten regulations, the LIBRA controversy could face even greater legal and financial consequences, reinforcing the growing pressure on crypto-related projects to ensure compliance.
