Argentine Judge to Investigate President Milei’s Ties to $LIBRA Cryptocurrency Amid Fraud Allegations

A federal judge in Argentina has been assigned to investigate President Javier Milei’s connection to the cryptocurrency $LIBRA, following accusations of fraud.
On Monday, Federal Judge María Servini was randomly selected to lead the probe, which will examine whether Milei engaged in any illegal activity. Some opposition figures have suggested that, depending on the findings, the president could even face impeachment.

The controversy began on Friday with the launch of $LIBRA. Milei promoted the cryptocurrency on his social media account on X, claiming it would stimulate economic growth by funding small businesses and startups.

Buoyed by Milei’s endorsement, $LIBRA briefly surged to a market capitalization of $4 billion. However, its value soon plummeted, sparking accusations that it was a scam. As the price collapsed, Milei deleted his promotional post.

Critics speculated that the situation resembled a “rug pull” scheme—where early investors drive up the value of a cryptocurrency, only to cash out quickly, leaving others with worthless holdings while the scheme’s architects walk away with the profits.

By Saturday, Milei’s office issued a statement distancing him from $LIBRA, asserting that he was not involved in its creation. The statement also defended Milei’s habit of promoting business ventures, including KIP Protocol, the company behind the cryptocurrency, as part of his free-market advocacy.

An anonymous government official told Reuters that if anyone was a victim of $LIBRA’s rapid rise and fall, it was Milei himself.

However, critics pointed to the fact that the cryptocurrency was sold through the website vivalalibertadproject.com, which prominently features Milei’s slogan, “Long Live Liberty!” This has fueled accusations that the president was directly involved in the scheme.

Jonatan Baldiviezo, a lawyer and one of the plaintiffs in Monday’s case, told The Associated Press that he holds Milei personally responsible.

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

The local NGO Observatorio del Derecho a la Ciudad, which also filed a lawsuit, accused Milei of costing thousands of people their savings.

“We denounce Milei as being part of an illicit association that organized a scam with the $LIBRA cryptocurrency that simultaneously affected more than 40,000 people with a loss of more than $4 billion,” the NGO said on its website.

Even Hayden Davis, one of $LIBRA’s developers, appeared to blame Milei for the token’s sudden collapse.

“Despite prior commitments, Milei and his team unexpectedly changed their position, withdrawing their support and deleting all previous posts on social media,” Davis said in a video.

Experts believe an impeachment trial is unlikely, but the scandal could damage Milei’s economic credibility ahead of the 2025 midterm elections. In a social media post late Friday, Milei dismissed the controversy, accusing his political opponents of fueling the backlash.

“This increases our conviction to kick them in the [a**],” he wrote.