Argentine President Javier Milei Faces Fraud Charges Over Cryptocurrency Promotion
Argentine President Javier Milei is facing serious fraud allegations after promoting the cryptocurrency $LIBRA, which resulted in significant investor losses. The scandal has led to criminal charges, calls for impeachment, and a heated political debate over the responsibilities of public officials in the financial space.
The Promotion and Its Aftermath
On February 14, 2025, President Milei posted on social media, endorsing $LIBRA, a newly launched cryptocurrency that he claimed would support Argentina’s economy by funding small businesses. His endorsement triggered an immediate surge in $LIBRA’s market capitalization, which briefly reached $4.5 billion. However, within hours, the token’s value crashed by over 94%, causing substantial financial losses to investors.
Legal Repercussions
In response, a group of Argentine lawyers, including Jonatan Baldiviezo, filed criminal fraud charges against Milei, arguing that his promotion of $LIBRA was part of an illicit scheme to defraud investors. Baldiviezo stated, “Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential.”
Additionally, attorney Agustín Rombolá announced plans for a class-action lawsuit representing affected investors. The legal case accuses Milei of fraud, price manipulation, and financial crimes incompatible with his position as head of state.
Political Fallout
The scandal has led to widespread backlash, with opposition lawmakers accusing Milei of leveraging his position to promote a fraudulent financial product. Critics argue that his actions have undermined public trust, and impeachment proceedings are now being discussed in Argentina’s Congress.
Presidential Response
Under intense scrutiny, Milei deleted his original post and denied any wrongdoing. He claimed he was unaware of $LIBRA’s specifics when he endorsed it and called for an internal review into how he became involved. A statement from the President’s Office asserts that Milei had no financial ties to the cryptocurrency and removed the post to prevent further speculation.
Broader Implications
This case highlights the potential dangers when political leaders endorse unregulated financial products. It serves as a reminder of the risks associated with cryptocurrency investments and the need for investor protection in digital markets. As investigations continue, the scandal could have lasting repercussions for both Argentina’s political landscape and its approach to cryptocurrency regulation.
