BUENOS AIRES, Argentina (AP) — An Argentine judge has been assigned to investigate allegations of fraud against President Javier Milei following his brief promotion of a cryptocurrency that plummeted in value just hours after its launch last week. Milei has denied any wrongdoing, asserting that he acted in good faith.
The controversy erupted on Friday when Milei publicly endorsed $LIBRA, a cryptocurrency developed by KIP Protocol and Hayden Davis, describing it as an entrepreneurial initiative aimed at fostering economic growth and supporting small businesses in Argentina. His endorsement initially spurred a surge in market capitalization, briefly surpassing $4 billion. However, as skepticism mounted, the cryptocurrency’s value rapidly declined, prompting accusations that it was a scam. By the time Milei deleted his post, many investors had suffered significant losses.
On Sunday, a group of lawyers in Argentina filed fraud complaints against the libertarian president, alleging his involvement in a scheme to mislead investors. The case was officially assigned Monday to Judge María Servini, head of Federal Court No. 1 in Buenos Aires. Servini does not have a set deadline to complete her investigation.
Milei and his office have sought to distance themselves from the scandal. In an official statement, the president’s office emphasized that Milei had no role in the development of $LIBRA and removed his social media post to prevent further speculation. According to the statement, the president frequently highlights entrepreneurial projects to encourage investment and job creation in Argentina.
“The president shared a post on his personal accounts announcing the launch of KIP Protocol’s project, just as he does daily with many entrepreneurs,” the statement read. “He was not involved at any stage of the cryptocurrency’s development.”
Critics have pointed out that the cryptocurrency was promoted through a website called vivalalibertadproject.com, a reference to Milei’s signature phrase, “Viva la libertad!” which he often uses in speeches and on social media. This association fueled suspicions about the extent of his involvement.
Following the backlash, Milei took to social media platform X to clarify that he had no prior knowledge of the cryptocurrency’s details. In an interview with Todo Noticias on Monday, he further defended himself, arguing that investors knew the risks associated with digital assets.
“I have nothing to hide and I have no problem coming forward and showing my face,” Milei stated. “Those who invested did so voluntarily, fully aware of the risks involved as volatility traders.”
Despite Milei’s insistence on his innocence, the country’s Anti-Corruption Office—an entity operating under the executive branch—announced that it would launch an investigation into the matter.
Jonatan Baldiviezo, one of the lawyers involved in the case, contended that Milei’s actions were part of a broader illicit scheme designed to perpetrate fraud.
“Within this illicit association, the crime of fraud was committed, and the president’s actions were central to it,” Baldiviezo alleged.
As the investigation unfolds, the case is expected to spark further debate over the role of political leaders in financial endorsements and the responsibilities they bear toward the public.
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