Argentina’s President Javier Milei Faces Fraud Allegations in LIBRA Crypto Scandal

The post Argentina’s President Javier Milei Faces Fraud Allegations in LIBRA Crypto Scandal appeared first on Coinpedia Fintech News

Argentina’s President Javier Milei is facing fraud allegations over his alleged promotion of LIBRA, a Solana-based token that collapsed, wiping out millions in investor funds. After a huge outlast over the coin and scam, legal entities have filed a lawsuit to protect the investor’s rights. A federal judge, María Servini, has been assigned to investigate the case, following multiple legal complaints. Milei’s actions are linked with insider trading and many assume that Milei’s X post was pre-planned and now they are cooking new stories to divert the attention. 

What Happened?

The controversy started with Milei’s X post to support LIBRA, calling it an initiative to boost small businesses. However, Milei defended his action by calling it a routine post to support small-size entrepreneurs in Argentina and he is not directly involved in the project. However the damage was done, the 6-hour endorsement fueled a market cap surge past $4 billion, but shortly after, insiders withdrew $87 million in liquidity, causing the token to crash 95%. Investors accused Milei of misleading them, leading to fraud charges. 

Blockchain analysis firm Bubblemaps later revealed that LIBRA’s creators were also behind failed crypto projects, including MELANIA, which collapsed in January. 

In the meanwhile, Hayden Mark Davis, a KIP Protocol representative who admitted of taking profit in the LIBRA scandal, accused President Milei of causing the cryptocurrency’s collapse, stating in a video that Milei and his team abruptly withdrew their support and erased previous endorsements from social media despite prior commitments.

Also Read :   LIBRA Meme Coin Crash Exposed: $110M Insider Profits Raise Red Flags   ,

Legal Battle & Market Fallout

However, Judge Servini’s investigation has no deadline and runs parallel to a separate probe by Argentina’s Anti-Corruption Office. Lawyer Jonatan Baldiviezo, who filed one of the complaints, claims Milei played an essential role in what he calls a fraudulent scheme.

The impact wasn’t limited to crypto. Argentina’s stock market took a hit, with the S&P Merval dropping over 5%, marking its worst intraday decline since July 2023. Economy Minister Luis Caputo tried to downplay the incident, calling crypto a space full of “gamblers” and hard to understand for most people.

Milei Responds

Speaking on Todo Noticias, Milei maintained that he has nothing to hide and is willing to face investigations. He insisted that as a technology enthusiast, he simply shared information about a tool for financing entrepreneurs.

As the legal probes continue, investors and regulators alike are watching closely. The case, now dubbed ‘Cryptogate’, could have long-term implications for crypto regulations in Argentina.