BUENOS AIRES: An Argentine judge has been assigned to investigate President Javier Milei’s alleged involvement in the cryptocurrency $LIBRA amid fraud accusations.
Federal Judge Maria Servini was randomly selected to lead the probe, which will determine whether Milei acted illegally. Some opposition leaders have warned that, depending on the findings, he could even face impeachment.
The controversy erupted on Friday when $LIBRA was launched. Milei promoted the cryptocurrency on his social media, claiming it would boost economic growth by funding startups and small businesses. Following his endorsement, $LIBRA briefly reached a $4 billion market cap before its value plummeted, prompting accusations of a scam. Critics suggested it resembled a “rug pull” scheme, where early investors cash out at a peak, leaving others with worthless assets.
As the cryptocurrency crashed, Javier Milei deleted his post. By Saturday, his office released a statement denying any involvement in the project. It clarified that he routinely promotes business ventures, including the cryptocurrency’s developer, KIP Protocol, as part of his free-market advocacy.
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“The president shared a post about KIP Protocol’s project, just as he does daily with other entrepreneurs aiming to create jobs and attract investment in Argentina,” the statement read.
An anonymous government official told Reuters that if anyone was misled, it was Milei himself. “The only victim here is Milei,” the official claimed, adding that he frequently endorses private projects and will continue to do so.
However, critics noted that $LIBRA was promoted on a website featuring Milei’s slogan, “Long Live Liberty!” Lawyer Jonatan Baldiviezo, one of the plaintiffs in the case, held Milei responsible, arguing that his actions were crucial in the alleged fraud. “This was an illicit association, and the crime of fraud was committed with the president’s involvement,” he said.