Argentina’s Javier Milei Faces Fraud Charges After LIBRA Crypto Rug Pull Scandal

Argentina is at the center of a massive crypto controversy, and President Javier Milei is right in the middle of it. It all started with a single post on X, where Milei endorsed LIBRA, a new cryptocurrency. Within hours, the token’s price skyrocketed from $0.006 to nearly $5 as investors scrambled to buy in, believing the project had government backing.

But then, disaster struck. Just six hours later, LIBRA’s price crashed to $0.84, wiping out billions and leaving investors in shock. What seemed like a golden opportunity quickly turned into a financial nightmare.

Now, Milei is facing fraud allegations, and Argentina’s judiciary is stepping in. Was this an honest mistake, or is there more to the story?

Lawyers File Fraud Charges

The sudden crash led to immediate legal trouble. Argentine lawyers Jonatan Baldiviezo and Marcos Zelaya filed fraud charges against Milei, arguing that his post deceived investors. They compared the situation to a “rug pull,” a common crypto scam where developers promote a token before abandoning it, leaving investors with huge losses.

Meanwhile, the law firm Burwick Law encouraged affected investors to contact them for legal assistance in recovering losses.

Damage Control: Milei Deletes Post, but Is It Too Late?

As the controversy grew, Milei quickly deleted his post and denied knowing anything about LIBRA’s creation. His team released a statement saying the post was removed to prevent speculation. However, legal experts argue that the harm was already done.

Argentina’s judiciary will now decide whether Milei and his team misled investors.

Questions of Insider Trading

The situation became even more suspicious when Jupiter Exchange admitted that some of its team members had known about LIBRA’s launch weeks before Milei’s post. According to them, private groups were already discussing an “Argentina Coin.” While Jupiter denied any insider trading, the revelation raised concerns that certain people may have made secret profits before the crash.

Kelsier Ventures CEO Hayden Davis, one of LIBRA’s biggest supporters, blamed Milei for the token’s collapse. He claimed the president’s team initially promised to back the project but later withdrew, shaking investor confidence. Davis denied any fraudulent activity, saying he still controlled $100 million in LIBRA funds. He pledged to reinvest and use the money to buy back and burn tokens to restore value.

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Will Milei Face Serious Consequences?

Argentina’s Anti-Corruption Office has launched an investigation to determine whether any crimes were committed. Raising further doubts, government officials confirmed that President Milei met with KIP Protocol executives Mauricio Novelli and Julian Peh in October 2024 to discuss a blockchain initiative. Later, in January 2025, Milei also met with Hayden Davis, one of LIBRA’s key figures. However, the government insists these meetings had no official ties to the state.

Milei’s team has denied the fraud allegations, stating that his post was simply a way to support entrepreneurs and not part of an official government project. However, the Anti-Corruption Office remains skeptical. A special task force of crypto, finance, and anti-money laundering experts has been assembled to investigate potential fraud or misconduct.

The government has promised to share all findings with the courts, but with lawsuits piling up and angry investors demanding justice, Milei’s presidency could be at serious risk.