A judge in Argentina has been appointed to investigate allegations of fraud against President Javier Milei regarding his brief promotion of a cryptocurrency that collapsed in value within hours of its launch last week. Milei has distanced himself from the controversy, asserting that he acted in good faith.
Milei and his office have denied any involvement with the creators of the $LIBRA cryptocurrency. They explained that he initially highlighted it on Friday as a potential entrepreneurial project that could benefit Argentina. However, after learning more about the project, he withdrew his support.
On Sunday, lawyers in Argentina filed complaints accusing Milei of fraud. The case was assigned to Judge María Servini, who heads Federal Court No. 1 in Buenos Aires. There is no set deadline for her to complete the investigation.
Milei had tweeted on Friday evening, coinciding with the launch of the $LIBRA coin, stating that the cryptocurrency was intended to “encourage economic growth by funding small businesses and startups.”
The cryptocurrency briefly saw a surge in value, reaching a market capitalization of over $4 billion. However, its value quickly began to fall, fueled by critics who raised concerns it could be a scam. As the cryptocurrency’s value plummeted, leading to significant losses for many new investors, Milei deleted his initial post just hours later.
The cryptocurrency, created by KIP Protocol and Hayden Davis, was accessible through a link that led users to a website named vivalalibertadproject.com, a reference to Milei’s signature phrase “Viva la libertad!” often used at the end of his speeches and social media posts.
In response to the backlash, the president’s office issued a statement clarifying that Milei had no involvement in the cryptocurrency’s development. They also explained that he chose to delete his post in order to avoid speculation and reduce further attention to the project after the negative reaction to its launch.
The president’s office explained that Milei had posted about the launch of KIP Protocol’s project on his personal accounts, as he regularly does with various entrepreneurs aiming to launch projects in Argentina to create jobs and attract investment.
After removing the post, Milei stated on X that he was not aware of the cryptocurrency’s details and accused his political adversaries of exploiting the situation for their gain.
“I have nothing to hide, and I’m not afraid to face the situation,” Milei said in an interview with Todo Noticias on Monday. “Those who participated voluntarily knew the risks involved,” he added. “They were aware of the volatility and chose to engage in it.”
In response, the president’s office confirmed that Argentina’s Anti-Corruption Office, under the executive branch, would be investigating the matter.
Jonatan Baldiviezo, a lawyer and one of the plaintiffs, explained that the lawsuit alleges Milei’s actions were part of an illicit group responsible for committing “a series of fraudulent acts,” and that the president’s involvement was central to the fraud.