President Javier Milei of Argentina is under scrutiny after lawyers filed fraud complaints in a criminal court, accusing him of promoting a cryptocurrency. The controversy began when Milei posted a message on the social media platform X about a digital currency named $LIBRA. He asserted that the currency aimed to foster economic growth by supporting small businesses and startups. This post, however, was soon deleted, leaving a trail of significant financial losses for its investors.
The cryptocurrency $LIBRA, developed by KIP Protocol and Hayden Davis, saw its value plummet shortly after Milei’s promotion, culminating in millions of dollars in investor losses. Milei’s message directed potential investors to a website entitled ‘vivalalibertadproject.com,’ linking the project to a well-known motto used by Milei in his public engagements.
In defense, the President’s Office released a statement indicating that Milei had not participated in the cryptocurrency’s development and chose to withdraw the post to prevent further speculation. The office claimed Milei’s action was in response to public sentiment post-launch, aiming to limit exposure to the project.
Lawyer Jonatan Baldiviezo, one of the individuals who lodged the complaint, highlighted a potential illicit association geared towards fraudulent activities. Baldiviezo labeled the incident as a ‘rug pull,’ a term commonly used in the cryptocurrency space to describe a scenario where developers launch a token, lure in investors, and subsequently abandon the project, rendering the tokens worthless.
Baldiviezo, alongside fellow lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano, who has extensive experience with the Argentine Central Bank, have demanded a thorough investigation. They insist that Milei’s behavior constitutes a breach of the Public Ethics Law.
As the legal proceedings await further action, criminal justice authorities are expected to assign a judge or pass the case to a prosecutor. This would help ascertain the depth of legal implications surrounding Milei’s involvement and whether any wrongdoing occurred.
In addition to the legal claims, Hayden Mark Davis, representing KIP Protocol, used social media to express discontent, blaming President Milei for the cryptocurrency’s downfall. Davis claimed that Milei’s unexpected withdrawal of support and deletion of social media posts contributed to the collapse.
Milei defended his actions in a subsequent social media statement, denying prior knowledge of the currency’s specifics. He attributed the chaotic situation to political adversaries attempting to capitalize on the incident. Meanwhile, the administration confirmed upcoming steps to engage with the Anti-Corruption Office to assess potential infractions by those related to the KIP Protocol project.
As the situation develops, the Argentine judiciary will play a crucial role in determining any legal repercussions for President Milei regarding the cryptocurrency controversy.
