Argentina in Turmoil: President Milei Faces Fraud Charges Over LIBRA Crash

Argentine President Javier Milei is facing mounting legal trouble after promoting the cryptocurrency LIBRA, which saw a meteoric rise followed by a catastrophic crash. The fallout has led to fraud allegations, a class-action lawsuit, and calls for impeachment, putting Milei's administration under intense scrutiny.

The Rise and Fall of LIBRA

The controversy erupted on February 14, 2025, when President Milei took to his social media platform X (formerly Twitter) to endorse LIBRA, calling it a “game-changer for economic growth” and an innovative way to fund small businesses and startups. His backing triggered a buying frenzy, causing the token’s market capitalization to surge to $4.56 billion within hours.

But the excitement didn’t last long. Shortly after reaching its peak, LIBRA plummeted by over 94%, wiping out millions in investor funds. Furious traders accused the project of being a pump-and-dump scheme, prompting a legal firestorm against the president.

Lawyers Take Milei to Court

A group of Argentine lawyers, including Jonatan Baldiviezo and Marcos Zelaya, along with engineer María Eva Koutsovitis and economist Claudio Lozano, filed a criminal complaint against Milei. They claim his promotion of LIBRA amounted to fraud and a breach of public trust.

“This was an orchestrated scam, and Milei played a key role in misleading the public,” said Baldiviezo in a statement. The legal team alleges that Milei’s endorsement fueled artificial hype, leading to devastating losses for ordinary investors.

Milei’s Denial and Damage Control

Amid growing backlash, Milei’s office issued a statement denying any wrongdoing. The president deleted his promotional post and claimed he had no financial ties to LIBRA.

“I was not aware of the project’s details at the time of my endorsement,” Milei said, adding that he withdrew support once he “realized the risks” associated with it.

But critics aren’t buying it. Opposition lawmaker Leandro Santoro has vowed to push for impeachment, calling the scandal “a national disgrace.”

“This isn’t just about a bad investment—this is outright fraud at the highest levels of government,” Santoro said.

Was There a Secret Deal?

Further complicating the case, Hayden Mark Davis, a representative of KIP Protocol—the company behind LIBRA—came forward with damning allegations.

Davis claims Milei’s team had a pre-arranged deal to promote the token but suddenly pulled back when things went south.

“Despite prior commitments, Milei and his team betrayed us by abruptly withdrawing their support,” Davis said.

If true, these claims could blow the case wide open, raising serious questions about whether Milei personally profited from the promotion.

Government Watchdogs Step In

Argentina’s Anti-Corruption Office (OA) has now launched an investigation into Milei’s involvement with LIBRA. Officials say they will examine whether public ethics laws were violated and if any financial misconduct took place.

A spokesperson for the OA stated:

“No one is above the law, and we will follow the money trail to uncover the truth.”

Crypto and Politics: A Dangerous Mix?

This isn’t the first time a political leader has been accused of shady dealings in the crypto world. In recent years, several high-profile figures have faced backlash for endorsing unregulated digital assets that later collapsed.

With Argentina already facing a fragile economy, the LIBRA debacle has sparked fresh concerns over trust in leadership and financial transparency.

As legal proceedings unfold, all eyes are on Milei. Will he face legal consequences, or will he walk away unscathed? One thing is certain—this scandal is far from over.