Crypto Scandal: Arguing Fraud in Argentina’s Libra Token Crisis

Crypto Scandal- Legal Action Taken Against Argentina’s President for Crypto Fraud

Crypto Scandal– Argentine lawyers have initiated legal action against President Javier Milei, accusing him of involvement in a cryptocurrency fraud scheme. This follows the promotion of the Solana-based token, Libra (LIBRA), which experienced a significant price surge and subsequent crash over the weekend.

On February 14, Milei posted about the Libra token on social media platform X, leading to a massive spike in its market capitalization, reaching $4.56 billion. However, shortly after Milei deleted the post, the token plummeted by over 94%. This drastic drop has sparked claims of a “pump and dump” operation, where the price of an asset is artificially inflated and then quickly sold off for profit.

Criminal Complaint Filed Against Milei

Lawyers Marcos Zelaya and Jonatan Baldiviezo, along with other professionals, have filed criminal charges against the president, alleging his involvement in fraud related to the Libra promotion. Baldiviezo also claims that Milei violated Argentina’s Public Ethics Law, which mandates transparency for public officials regarding their assets and potential conflicts of interest.

“Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential,” Baldiviezo remarked.

In a separate legal complaint, Argentine lawyer Agustín Rombolá accused Milei of fraud, price manipulation, and financial crimes. Rombolá also mentioned that his law firm is preparing a class-action lawsuit for those who may have lost money due to the token’s collapse.

Milei’s Response

In response to the allegations, Milei requested an investigation by the Anti-Corruption Office, including a review of his own involvement. He maintained that he was unaware of the specifics of the Libra project when he endorsed it, emphasizing that he had no financial connection to the company behind the token.

Despite these claims, Milei acknowledged having met with representatives from KIP Protocol, the company behind Libra, in October 2024.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.