đź’° Javier Milei is under fire after promoting and deleting a post about LIBRA, which later crashed in value. Lawyers accuse him of fraud.
Milei Accused of Crypto Fraud
Argentine lawyers have filed a fraud complaint against President Javier Milei after he endorsed the LIBRA token on X, only to delete the post hours later. His promotion briefly sent LIBRA’s price soaring by 3,223%, but the token later collapsed by 90%, leaving investors in turmoil.
On February 14, Milei claimed that LIBRA would help grow Argentina’s economy by funding small businesses. However, five hours later, he removed his post, stating he had no prior knowledge of the project’s details. His administration downplayed the incident, saying he was merely supporting entrepreneurs.
Despite this, the backlash has been swift. Former President Cristina Fernández de Kirchner accused Milei of deception, while opposition lawmakers are pushing for a congressional investigation and even impeachment.
LIBRA Token Crash Sparks Investigation
A group of Argentine lawyers officially accused Milei of fraud, comparing the incident to a rug pull—a scam where developers lure investors before abruptly abandoning a project. Jonatan Baldiviezo, one of the lawyers, argued that Milei played a crucial role in the alleged scheme.
The country’s Anti-Corruption Office is now reviewing the case. Meanwhile, a judge is expected to assess the claims this week.
Who’s Behind LIBRA?
LIBRA was developed by KIP Protocol and Hayden Davis. Investors could buy tokens through a website referencing Milei’s famous slogan. However, after the token crashed, Davis blamed Milei for withdrawing support at the last minute.
Milei, in turn, dismissed his critics as political opportunists, insisting he had no involvement in the project.
Potential Insider Trading?
Blockchain analysts have uncovered suspicious trading activity. According to Lookonchain, someone bought LIBRA too late, losing over $5.3 million in crypto. However, an unknown insider allegedly received $5 million in USD Coin (USDC) as compensation.
🔎 Key Findings from Analysts:
- A wallet linked to LIBRA’s creator cashed out $87 million after launch.
- The same wallet sniped LIBRA—buying in at a low price before the surge—and profited $6 million through hidden addresses.
- Bubblemaps analysts found connections between this wallet and other suspected pump-and-dump tokens, including TRUST, KACY, VIBES, and HOOD.
- The LIBRA creator has allegedly made over $100 million from similar crypto projects.
The situation remains under investigation, with more revelations likely to emerge.
