Javier Milei accused of fraud over promotion of cryptocurrency

Lawyers in Argentina have brought a fraud case against the country’s President Javier Milei for promoting a cryptocurrency whose value soon plummeted.

The libertarian leader wrote about a digital currency called $LIBRA in a tweet on Friday.

The cryptocurrency was aimed at “encouraging economic growth by funding small businesses and startups”, he said, before deleting his social media post a few hours later.

His message included a link to a website where the digital coins could be obtained. The domain name, vivalalibertadproject.com, is a reference to a well-known phrase Milei uses at the end of his speeches, which translates as “long live freedom”.

Shortly after Milei’s post on X, the value of $LIBRA, which was developed by KIP Protocol, collapsed, causing millions of dollars in losses for investors, according to the financial site Dexscreener.

Jonatan Baldiviezo, one of the lawyers who filed charges against Milei on Sunday, alleged that “an indeterminate number of frauds” had been committed.

Baldiviezo and his colleagues believe there could have been a “rug pull”, a term used to describe a scam when developers create a crypto token, attract investors and then quickly disappear with the proceeds.

“Within this illicit association, the crime of fraud was committed, in which the president's actions were essential,” claimed Baldiviezo, who also accused Milei of breaching the public ethics law.

Milei was also roundly condemned by his political opponents, with former President Cristina Kirchner suggesting over the weekend that he had acted as the “hook” for a “digital scam”.

Meanwhile, Esteban Paulón, a Socialist Party politician, promised to start impeachment proceedings against Milei over the incident.

“Just to be clear. On Monday we will file the request for impeachment of the president. What has happened is very serious,” he wrote on social media.

Milei has said that his political rivals are trying to take advantage of the episode.

“I was not aware of the details of the project, and after getting informed, I decided not to continue promoting it (which is why I deleted the tweet),” he said.

In a statement on Saturday, the President's Office said the country’s Anti-Corruption Office would be investigating the matter.

“All the information gathered in the investigation will be handed over to the judiciary to determine if any of the companies or individuals linked to the KIP Protocol project committed a crime,” it said.

Milei's team also said that members of his administration recently met with representatives of KIP Protocol at the presidential office.