Javier Milei Faces Lawsuit Over LIBRA Token Collapse

Crypto News Regulation

Argentina’s President Hit With Fraud Charges Over LIBRA Token Collapse

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 19, 2025

Key Takeaways

Argentine lawyers accuse President Javier Milei of fraud after his LIBRA endorsement led to a brief price surge before crashing;
The legal complaint claims Milei misled investors and violated ethics laws by promoting the token without disclosing conflicts;
Milei denies wrongdoing, saying he had no ties to LIBRA and has asked the Anti-Corruption Office to investigate his own actions.

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Argentina’s President Hit With Fraud Charges Over LIBRA Token Collapse

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Javier Milei, Argentina’s president, is facing legal complaints after endorsing a cryptocurrency that saw a brief surge before crashing.

A group of lawyers claims Milei’s public support for the token, Libra (LIBRA), misled investors and led to financial losses.

On February 14, Milei promoted LIBRA on X, helping its market value reach $4.56 billion. However, after he deleted the post, the token lost over 94% of its value, which caused accusations of market manipulation.

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In response, lawyers Jonatan Baldiviezo and Marcos Zelaya, economist Claudio Lozano, and engineer María Eva Koutsovitis filed a criminal complaint. They argue that Milei played a key role in fraudulent activity by endorsing the token.

Baldiviezo also claims the president violated Argentina’s Public Ethics Law, which requires officials to disclose their assets and any conflicts of interest. “Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential”, Baldiviezo stated.

Another legal complaint was filed separately by lawyer Agustín Rombolá, a member of the Unión Cívica Radical political party. In a February 16 statement, he accused Milei of fraud, financial misconduct, and market manipulation.

As of February 17, the case was expected to be assigned to a judge or referred to a prosecutor for further review. The presidential office announced that Milei had asked the Anti-Corruption Office to investigate himself and all government officials.

Recently, Public Citizen, a consumer advocacy group, urged US officials to investigate President Donald Trump’s promotion of the Official Trump (TRUMP) token. What did they say? Read the full story.