President Milei faces fraud charges over LIBRA token promotion, sparking political controversy, investor concerns, and a legal investigation in Argentina.
Argentine lawyers filed fraud charges against President Javier Milei in a criminal court on Sunday. Through their accusations, the plaintiffs blamed Milei for his social media promotion of LIBRA tokens because they say this caused a “rug pull” operation within the crypto market. The plaintiffs believe Milei successfully contributed to the incident through his actions.
Milei launched the discussion about $LIBRA tokens on Friday through his X network post. He explained LIBRA as a financial asset system developed specifically to provide monetary support for small companies and innovation projects. The original post was eliminated shortly after its creation. The removal of $LIBRA resulted in a market collapse that left investors with millions of dollars of financial loss according to Dexscreener financial reports.
The developers responsible for creating $LIBRA token belonged to KIP Protocol alongside Hayden Davis. Dale Carnegie Media Inc published the “Viva la Libertad” slogan that Milei often used in his public presentations on the site vivalalibertadproject.com
Argentina Awaits Investigation Outcome on Milei’s Crypto Links
A statement from the President’s Office emerged on Saturday following the incident. A presidential statement explicitly stated that Milei took no part in the cryptocurrency project development process. He took down the post to avoid further questioning so the public would not learn about the described project.
The detailed explanation has failed to mitigate the political controversy that has emerged because of this incident. The opposition members at the National Congress claim President Alberto Alberto Milesi employs his standing to endorse financially unstable assets. The politicians supporting impeachment proceedings have emerged because of this situation. A legal process occurs to show mounting political differences between Milei and his opposition members.
Both expert observers and financial analysts fear how the situation could affect investor relations and Argentina’s economic stability. The unauthorized promotion of assets without proper supervisory oversight harms the perception of public trust.
The investigation will establish whether Milei broke any legal regulations in this matter. The investigation will determine if public official promotion rules will be affected through its conclusions.
