Argentine Lawyers File Fraud Charges Against President Javier Milei Over Cryptocurrency Promotion

Lawyers claim Milei's involvement led to millions in losses from cryptocurrency / Ennio Leanza/Keystone via AP

In a significant legal development, Argentine lawyers have filed fraud charges against President Javier Milei in criminal court, accusing him of promoting a cryptocurrency on his social media that caused millions in losses for investors. This case has raised concerns about the President's role in endorsing financial projects without fully understanding their implications or ensuring transparency.

The controversy erupted on January 24, 2025, after President Milei posted on social media about a cryptocurrency called $LIBRA, which he claimed was designed to promote economic growth by supporting small businesses and startups. The post was quickly deleted within hours, but not before the value of the coin plummeted, resulting in severe financial losses for its brief investors. According to Dexscreener, a financial tracking site, the cryptocurrency collapsed shortly after the post, fueling suspicions of a "rug pull," a scam common in the crypto world.

The coin was developed by KIP Protocol, with Hayden Davis associated with its creation. The $LIBRA token could be accessed through a link directing users to a website called vivalalibertadproject.com, a reference to the popular slogan President Milei uses in his speeches.

Following the incident, Milei's office issued a statement clarifying that the President had no involvement in the coin's development and that the post was removed to mitigate further speculation. The statement emphasized that Milei had deleted the post after becoming aware of the situation and wished to avoid continued exposure of the project.

Jonatan Baldiviezo, one of the lawyers filing the charges, expressed concerns about an illicit operation aimed at perpetrating multiple frauds. According to Baldiviezo, Milei’s promotion of the cryptocurrency played a key role in the alleged fraud. The legal team, which also includes lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano (former president of Argentina's Central Bank), is pushing for a thorough investigation. They suggest that Milei’s actions could constitute the crime of fraud under Argentina's legal framework.

The lawyers have cited the operation as a potential example of a “rug pull,” a scam in which developers lure investors into purchasing a cryptocurrency or token, only to abandon the project once its value has inflated, making the asset worthless. Baldiviezo has also accused the President of violating Argentina’s Public Ethics Law, further complicating the situation.

In his defense, Milei denied any responsibility for the coin's collapse. He explained on X that he was not aware of the specifics of the cryptocurrency's development and claimed his decision to delete the post was based on acquiring more information about the project. He further suggested that political opponents were attempting to exploit the situation for their benefit.

In a statement, the President's Office emphasized that Milei’s involvement was limited to sharing information about the project on his personal social media, a common practice for him to support entrepreneurs and job creation in Argentina. The statement also noted that the country's Anti-Corruption Office would investigate the matter thoroughly, including whether any illegal actions were taken by KIP Protocol or any individuals involved in the project.

The issue took another turn when Hayden Mark Davis, a representative of KIP Protocol, blamed President Milei for the cryptocurrency’s downfall. In a video posted on social media, Davis stated that despite earlier assurances, Milei and his administration had suddenly withdrawn their support for the project and removed all related posts from their social media accounts. This shift in position, according to Davis, contributed to the sharp decline in the currency’s value.

The unfolding legal battle over the cryptocurrency promotion is raising critical questions about the responsibility of public figures, like President Milei, in endorsing financial ventures that affect the livelihoods of citizens. While the Argentine administration has promised to cooperate with judicial authorities, the case remains a complex legal and political matter with potentially far-reaching consequences for Milei’s political future and Argentina's economic stability.