Argentina's president faces fraud charges over $LIBRA token promotion
President Milei's controversial social media activity triggers uproar and accusations of crypto market misconduct.
Key Takeaways
- Argentinian president faces fraud charges related to $LIBRA token promotion on social media.
- Investors suffered losses after the $LIBRA token value collapsed following the president's social media post and its subsequent deletion.
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Argentine President Javier Milei faces criminal fraud charges following his promotion of the $LIBRA token, which surged to a $4.5 billion valuation before crashing.
Argentine lawyers filed the charges in criminal court on Sunday, claiming Milei’s social media promotion of $LIBRA constituted an illicit association to commit fraud, according to the AP.
“Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential,” said Jonatan Baldiviezo, one of the lawyers filing the charges.
The plaintiffs, including Baldiviezo, lawyer Marcos Zelaya, engineer María Eva Koutsovitis, and former Central Bank president Claudio Lozano, characterized the incident as a “rug pull.” They argue that it violated Argentina’s Public Ethics Law.
Reuters reported Saturday that opposition lawyers were considering launching an impeachment trial against President Milei. Opposition figures, including lawmaker Leandro Santoro, called the incident a scandal and demanded accountability.
The next step in the criminal justice process will be determined on Monday, with either a judge being assigned or the case being referred to a prosecutor.
Milei promoted $LIBRA on Friday through X, presenting it as part of the Viva La Libertad Project, a crypto initiative supposedly aimed at funding small businesses and startups. Hours later, he withdrew his endorsement and admitted to insufficient due diligence as the token’s value dropped by 85%.
Milei clarified that he had no connection to the project team and criticized political opponents for taking advantage of the situation.
The President’s Office stated Saturday that Milei was not involved in the project’s development, though they confirmed Milei and administration officials had met with representatives from KIP Protocol, the project’s developer, at the presidential office.
The President’s Office stated the Anti-Corruption Office would investigate and share findings with the judiciary.
Hayden Mark Davis, a representative of KIP Protocol, blamed Milei for the collapse of the $LIBRA token.
In a video shared on social media, Davis stated that Milei and his team initially supported the project but later reversed their position, unexpectedly withdrawing their support and deleting all related posts.
He expressed that this abrupt decision contradicted prior assurances and directly contributed to the token’s market collapse.
GeckoTerminal data shows that $LIBRA traded at around $0.3 at press time, down approximately 26% in the past 24 hours and 92% from its peak.
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