Argentina President Javier Milei Accused of Fraud Over Cryptocurrency Promotion
According to The Associated Press, Argentine lawyers have filed fraud charges against President Javier Milei, alleging his social media promotion of a cryptocurrency misled investors.
| Key Takeaways: – Argentine lawyers filed fraud charges against President Javier Milei for promoting the LIBRA token. – Analysis found LIBRA and MELANIA tokens were linked, with insiders allegedly profiting millions before transferring funds to a connected wallet. |
The complaint, submitted Sunday in a criminal court, claims Milei’s endorsement of the LIBRA token led to significant financial losses after its value plummeted.
On Friday, President Javier Milei posted on X about LIBRA, describing it as a tool to boost economic growth by funding small businesses and startups. However, after he deleted the post, the token’s value dropped by over 90%, raising accusations of a pump-and-dump scheme.
The legal complaint was filed by lawyers Marcos Zelaya and Jonatan Baldiviezo, along with engineer María Eva Koutsovitis and economist Claudio Lozano.
They argue that Milei’s promotion of LIBRA amounted to fraudulent behaviour and likened the situation to a “rug pull,” a common crypto scam where developers abandon a project after driving up its value. Baldiviezo also cited a violation of Argentina’s Public Ethics Law.
Blockchain analysis firm Bubblemaps revealed connections between LIBRA and another token, MELANIA, alleging both were controlled by the same group. MELANIA is a meme coin on Solana that was launched around the time Donald Trump took office. MELANIA’s launch was also controversial, as the token’s price quickly dropped after attracting a lot of liquidity.
Their investigation found that the wallet behind MELANIA token made a $2.4 million profit and that a related address linked to LIBRA’s creator cashed out $87 million, including $6 million from LIBRA. These funds were transferred through the USDC Cross-Chain Transfer Protocol to a wallet associated with MELANIA’s developer.
LIBRA was developed by KIP Protocol and Hayden Davis, with access provided through a website referencing Milei’s signature phrase, “Viva la Libertad.” The President’s Office denied Milei’s involvement in the project, stating he removed his post to prevent speculation and limit further exposure.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
