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On Sunday, Argentine lawyers filed criminal fraud charges against President Javier Milei after he promoted a cryptocurrency on his social media, which quickly collapsed and caused millions in investor losses.

The charges stem from Milei's Friday post on X, where he introduced the cryptocurrency $LIBRA, claiming it would encourage economic growth by supporting small businesses and startups.

Milei later deleted the post just hours after sharing it, and according to financial site Dexscreener, the coin's value plummeted, leaving investors with significant losses.

According to AP News, the cryptocurrency was developed by KIP Protocol and Hayden Davis and could be accessed through a link leading to a website called vivalalibertadproject.com—a reference to Milei's popular catchphrase.

In response to the backlash, the President's Office clarified that Milei had no involvement in the creation of the cryptocurrency.

They further explained that the post was deleted to prevent further speculation and minimize its visibility.

However, the lawyers who filed the charges believe the incident was part of a broader scheme to defraud investors, referring to it as a "rug pull" in the crypto world.

This operation occurs when developers attract investors with a promising token but later abandon it once its value becomes inflated, making it worthless.

Milei Defends Himself Against Fraud Claims, Blames Political Opponents

Jonatan Baldiviezo, one of the lawyers behind the charges, argued that Milei's actions played a key role in the alleged fraud.

"Within this illicit association, the crime of fraud was committed, in which the president's actions were essential," Baldiviezo said. The plaintiffs also claim Milei violated Argentina's Public Ethics Law, MarketWatch said.

In response, Milei stated on X that he was unaware of the cryptocurrency's development and placed blame on his political opponents, suggesting they were attempting to exploit the situation.

"I was not aware of the details of the project, and after getting informed, I decided not to continue promoting it," Milei said.

The case is now in the hands of Argentina's criminal justice system. Criminal justice authorities are expected to appoint a judge or refer the matter to a prosecutor for further investigation.

Meanwhile, the President's Office announced that the Anti-Corruption Office, which operates under the Executive Branch, would investigate the issue further.

Hayden Mark Davis, a representative of KIP Protocol, criticized Milei for withdrawing support after initially endorsing the project.

Davis posted a video accusing Milei's team of reversing their position, which he said led to the collapse of the cryptocurrency.

The investigation into the incident is ongoing, and authorities will assess whether any crimes were committed by individuals or companies involved in the $LIBRA project.

Tags

Cryptocurrency, Argentina