A judge in Argentina has been tasked with investigating claims of fraud involving President Javier Milei related to his recent endorsement of a cryptocurrency, the value of which plummeted shortly after its debut last week. Milei has distanced himself from the controversy, asserting that he acted in an honest manner.
Milei and his administration have denied any connection to the developers of the $LIBRA cryptocurrency, asserting that while he initially highlighted it on Friday as a project that could have potential benefits for Argentina, he later learned more about it before retracting his endorsement.
On Sunday, legal actions were taken against the libertarian president, with allegations of fraud filed by several lawyers in the country. The case was assigned to Judge María Servini, who oversees Federal Court No. 1 in Buenos Aires, and she currently has no deadline for concluding her investigation into the claims.
In a tweet coinciding with the launch of the $LIBRA coin on Friday, Milei stated that the cryptocurrency aimed to “encourage economic growth by funding small businesses and startups.” Initially, the cryptocurrency saw a temporary increase, reaching a market capitalization exceeding $4 billion, but it soon began to decline amid allegations that it could be fraudulent. As the value dropped significantly, Milei deleted his post, resulting in massive financial losses for many investors who had just entered the market.
The coin, created by KIP Protocol and Hayden Davis, could be accessed via a link leading to a website titled vivalalibertadproject.com, which references the popular phrase “Viva la libertad!” often used by Milei at the end of his speeches and social media communications.
The president’s office released a statement clarifying that Milei had not participated in any phase of the cryptocurrency’s development and opted to delete his original post to prevent further speculation after observing the public’s reaction post-launch.
According to the office’s statement, “The president shared a post on his personal accounts announcing the launch of KIP Protocol’s project, similar to how he promotes numerous entrepreneurial efforts in Argentina aimed at fostering job creation and attracting investments.”
After removing the tweet, Milei expressed on X that he was not familiar with the specifics of the cryptocurrency and accused his political detractors of attempting to leverage the situation against him.
During an interview with Todo Noticias, he stated, “I have nothing to hide and I am more than willing to step forward and face the situation.” Milei added, “Those who decided to engage with the cryptocurrency were fully aware of the risks they were taking,” emphasizing that it was a speculative venture.
His office reiterated their commitment to transparency, noting that the country’s Anti-Corruption Office, under the executive branch, will conduct an investigation into the matter.
Jonatan Baldiviezo, a lawyer representing some of the plaintiffs, claimed on Sunday that the accusations against Milei involve an illicit operation aimed at executing a range of fraudulent activities related to the cryptocurrency incident.
He stated, “Within this unlawful organization, the crime of fraud occurred, and the president’s actions played a crucial role.”
