Argentine President Milei Faces Fraud Accusations Over Cryptocurrency Promotion

Argentine President Milei 

Argentine lawyers have lodged fraud accusations against President Javier Milei in a criminal court, alleging that his promotion of a cryptocurrency on social media led to significant financial losses, one of the lawyers informed The Associated Press.

On Friday, Milei shared a post on X about $LIBRA, describing it as a digital asset designed to "foster economic expansion by providing funding for startups and small enterprises."

Shortly after, the post was deleted, and the currency’s value plummeted, reportedly causing investors to lose millions, according to financial tracking site Dexscreener.

The digital token, created by KIP Protocol and Hayden Davis, was accessible through a link directing users to vivalalibertadproject.com, a site referencing the well-known slogan Milei frequently uses in his speeches and online posts.

In response, the President’s Office issued a statement on Saturday clarifying that Milei had no role in the cryptocurrency’s creation. The statement noted that the post was removed to prevent speculation and to reduce further risks following public backlash against the project’s launch.

Jonatan Baldiviezo, a lawyer and one of the complainants, explained to the AP that the case suggests an unlawful conspiracy to commit "an unspecified number of frauds." ''As part of this illicit network, fraud was perpetrated, with the president’s involvement being crucial,'' he stated.

Baldiviezo was joined in the legal filing by lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano, a former head of Argentina’s Central Bank during the administration of ex-President Alberto Fernández. The judiciary is set to appoint a judge or assign the case to a prosecutor for further examination on Monday.

The plaintiffs argue that Milei’s actions resemble a deceptive tactic in the cryptocurrency sector known as a "rug pull." This scheme typically involves launching an enticing digital token to attract investors, only for the developers to abandon the project, leaving the tokens worthless. Baldiviezo further claimed that Milei’s actions violated the Public Ethics Law.

''The President used his personal accounts to promote the KIP Protocol’s initiative, just as he regularly does with various entrepreneurs seeking to launch projects in Argentina to generate employment and attract investment,'' the President’s Office stated.

Following the deletion of his post, Milei addressed the controversy on X, asserting that he had no prior knowledge of the cryptocurrency’s development. He accused political opponents of capitalizing on the situation. ''I was unaware of the project’s details, and once I became informed, I chose to stop promoting it, which is why I removed the tweet,'' he explained.

The President’s Office also announced that Argentina’s Anti-Corruption Office, operating under the Executive Branch, would take immediate action. Additionally, the administration acknowledged that Milei and his officials had recently met with representatives from KIP Protocol at the presidential office.

''All findings from the investigation will be submitted to the judiciary to determine whether any individuals or entities linked to the KIP Protocol project engaged in criminal activities,'' the administration stated on Saturday.

Hayden Mark Davis, a KIP Protocol representative who previously met with Milei, accused the president of being responsible for the cryptocurrency’s downfall in a video posted to his social media on Saturday.

''Despite earlier commitments, Milei and his team unexpectedly reversed their stance, retracting their support and erasing all previous social media endorsements,'' Davis remarked.