Argentine President Javier Milei is at the center of a scandal involving fraud allegations over his promotion of the LIBRA cryptocurrency, which collapsed shortly after its launch.
Legal Action and Allegations
Lawyer Jonatan Baldiviezo, representing the plaintiffs, accuses Milei of participating in an 'illicit association' aimed at defrauding investors. The lawsuit, co-signed by multiple legal and financial professionals, argues that the president’s actions were essential in misleading the public. The case is now under review by Argentina’s criminal justice system.
What Happened with LIBRA?
The LIBRA token, developed on the Solana blockchain, saw an explosive rise in value after Milei's public endorsement. The market capitalization reached $4.56 billion on February 14, but within 11 hours, its value plummeted by over 94% to $257 million. At least eight wallets associated with the LIBRA team withdrew $107 million before the crash.
Milei’s Response: Denial and Counterattack
After deleting his promotional post, Milei claimed he was unaware of the project’s details and had no direct involvement. He later accused his political opponents of exploiting the situation to damage his reputation.
> *“To the filthy rats of the political caste who want to take advantage of this situation, I want to say that every day they confirm how vile politicians are,” Milei wrote on X and later deleted.*
His administration has since requested the country’s Anti-Corruption Office to investigate all government members.
The LIBRA token scandal has sparked political turmoil in Argentina and threatened President Milei’s reputation, increasing pressure on his administration.
