Legal Action Against Argentine President Over Cryptocurrency Incident
In a significant legal development, Argentine lawyers filed fraud allegations against President Javier Milei in criminal court on Sunday. This follows his promotion of a cryptocurrency on social media, as reported by one of the involved attorneys.
On Friday, Milei made a post on X regarding a cryptocurrency called $LIBRA, claiming that it was designed to stimulate economic growth by financing small businesses and startups. However, he quickly retracted the post just hours later, after which the value of the cryptocurrency plummeted, leading to substantial financial losses for investors who had briefly engaged with it, as noted by a financial tracking service.
The $LIBRA coin, which was created by KIP Protocol along with Hayden Davis, could be accessed via a link that led to a website named vivalalibertadproject.com, a phrase commonly associated with Milei’s speeches. In response to the negative feedback received following his post, the President’s Office released a statement on Saturday, clarifying that Milei had no part in the cryptocurrency’s creation. They added that the post was removed to prevent further speculation and limit additional backlash.
Jonatan Baldiviezo, one of the attorneys representing the plaintiffs, indicated that they perceive Milei’s actions as indicative of an unlawful collaboration aimed at committing a series of frauds. He emphasized that fraud was perpetrated, and the president’s actions were a key component leading to the incident. Baldiviezo’s petition was co-signed by fellow lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano, who previously led the Argentine Central Bank under former president Alberto Fernández. The criminal justice system is anticipated to appoint a judge for the case or redirect it to a prosecutor for thorough examination on Monday.
The plaintiffs argued that Milei’s promotion of the cryptocurrency reflected a notorious scam tactic in the cryptocurrency realm known as a “rug pull,” where developers entice investors with an appealing token only to abandon it for financial gain, thereby rendering the tokens nearly worthless afterward. Furthermore, Baldiviezo asserted that Milei breached the Public Ethics Law.
In defense, the President’s Office remarked that Milei frequently shares information on various entrepreneurial projects aimed at fostering job creation and investment in Argentina, similarly to how he promoted KIP Protocol.
After the swift deletion of his post, Milei took to X to assert that he had not been aware of the cryptocurrency’s specifics and accused political adversaries of attempting to capitalize on the situation. “I was not informed about the project details, and upon learning more, I chose not to endorse it further, which is why I deleted the tweet,” he explained.
Additionally, the President’s Office stated that the country’s Anti-Corruption Office would commence its examination immediately. They also acknowledged that Milei and several officials had met with KIP Protocol representatives at the presidential office in recent days. “All information collected during the inquiry will be turned over to the judiciary to confirm whether any individuals or entities associated with the KIP Protocol may have engaged in unlawful activities,” stated the Milei administration’s announcement on Saturday.
In a turn of events, Hayden Mark Davis, one of the representatives from KIP Protocol who had meetings with Milei, publicly assigned blame to the president for the cryptocurrency’s downfall through a video shared on his social media account on Saturday. “Contrary to prior agreements, Milei and his team unexpectedly altered their stance, withdrawing their support and erasing all related social media posts,” Davis declared.
This unfolding situation raises significant questions about the intersection of politics and cryptocurrency, presenting a complex legal landscape as the investigation develops.
