Milei Crypto Scandal: Did Argentina’s President Pump and Dump $LIBRA?

Fraud Allegations Arise From Presidential Crypto Endorsement

Following President Javier Milei’s promotion of a cryptocurrency on social media, Argentine lawyers have filed fraud complaints against him in criminal court. These legal challenges, initiated on Sunday, assert that the president’s endorsement of the digital currency amounts to a fraudulent operation, according to one of the lawyers involved.

Contentious Social Media Post

President Milei publicized a cryptocurrency called $LIBRA on X (formerly Twitter) on Friday, presenting it as a mechanism to stimulate economic expansion through funding for fledgling enterprises and startups. However, the post was quickly deleted, causing a sharp decline in the coin’s value and significant financial damage to many short-term investors, according to data from financial analysis firm Dexscreener.

Background and Promotion

The cryptocurrency was created through a partnership between KIP Protocol and Hayden Davis. The initial sale of the asset was facilitated via a specific online link, aligning with a well-known phrase often used by the president. After considerable public anxiety and conjecture, the president’s administration clarified that Milei was not involved in the cryptocurrency’s creation and that the promotional post was taken down to avert further turmoil in the market.

Legal Repercussions and Remarks

Attorney Jonathan Baldivieso, one of the individuals who filed the complaint, characterized the event as being “part of an illegal plan designed to perpetrate a series of fraudulent acts.” He emphasized that President Milei’s actions were essential to the purported scam. As the case progresses, legal professionals and market observers are assessing the potential consequences for both the political arena and the broader cryptocurrency market.