President Javier Milei of Argentina faces criminal fraud accusations because he participated in deflating the meme coin $LIBRA.
The legal action, led by lawyers Jonatan Baldiviezo and Marcos Zelaya, together with María Eva Koutsovitis and Claudio Lozano, contends that President Javier Milei deceives investors while breaking the rules of the Public Ethics Law in Argentina. The accusations against Milei establish his essential participation in a “rug pull” operation that resulted in extensive economic damage.
Mile’s promotion and sudden reversal
X platform owner Milei formerly operated as Twitter until he started promoting $LIBRA which attracted significant investment attention. Milei deleted the initial post rapidly, resulting in LIBRA experiencing a substantial loss in market value. The holdings prices on Dexscreener decreased right after market trackers started monitoring the platform.
The plaintiffs filed a fraud case against Milei after he utilized the X platform to endorse an asset that he planned to abandon. The Presidential Office dismissed all allegations by declaring Milei had no hand in $LIBRA creation. The office clarified that the original post had entrepreneurial goals yet removed it to stop the entry of speculators into the market. After gaining more knowledge about the project Milei posted on X to let users know he discontinued his promotion work. According to his claims, the situation allowed his political rivals to use the circumstances against him.
Evidence of prior meetings and internal investigation
Despite Milei’s denial, documents and online records indicate that he and members of his administration met with representatives of KIP Protocol, the developers of $LIBRA, before its launch. The Anti-Corruption Office has initiated an internal investigation to determine whether any wrongdoing occurred. The Presidential Office has confirmed that all findings will be submitted to the judiciary.
KIP protocol and Jupiter exchange respond
Hayden Davis, CEO of KIP Protocol, blamed Milei for $LIBRA’s failure. He claimed that Milei had initially agreed to support the project but withdrew without warning, damaging investor confidence. Crypto exchange Jupiter Exchange admitted that some of its team members were aware of $LIBRA’s launch beforehand but denied any involvement in insider trading. The exchange also acknowledged that multiple counterfeit tokens flooded the market following $LIBRA’s release, leading to confusion among investors.
Despite the collapse, Davis still controls $100 million in $LIBRA treasury funds. He has stated that he plans to reinvest and burn repurchased tokens, insisting that he remains committed to transparency. As legal proceedings continue, the controversy surrounding $LIBRA grows, putting both Milei and the Argentine government under intense scrutiny.