Argentine lawyers have accused President Javier Milei of fraud after investors suffered losses following his promotion of the meme coin $LIBRA.
According to The Associated Press, lawyers filed a lawsuit against President Milei on 16 February, accusing him of involvement in an “illicit association to commit fraud”.
Plaintiff and lawyer Jonatan Baldiviezo told the news outlet that the case points to a scheme enabling “an indeterminate number of frauds”. He added: “Within this illicit association, the crime of fraud was committed, and the president’s actions were essential.”
Created by KIP Protocol and Hayden Davis, $LIBRA was closely linked to Milei’s personal political brand and was accessible through the website vivalalibertadproject.com, which referenced the President’s well-known slogan.
The website states: “As a symbol of this movement and in honour of Javier Milei’s libertarian ideas, we are launching the $LIBRA token, designed to strengthen the Argentine economy from the ground up by supporting entrepreneurship and innovation.”
This message was similar to a promotional post made by Milei on 14 February. However, he deleted the post just hours later, after which there was a sharp decline in the coin’s value resulting in millions of dollars in losses for investors.
Following backlash from political rivals, investors and the general public, Milei posted on X: “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).”
Additionally, the President’s office said: “The President shared a post on his personal accounts announcing the launch of KIP Protocol’s project, as he does daily with many entrepreneurs who wish to launch projects in Argentina to create jobs and attract investments.”
Furthermore, the office asserted that he was not involved at any stage in the development of $LIBRA.
The incident has attracted a lot of criticism, with Baldiviezo describing it as a “rug pull”. Criminal justice authorities are now expected to appoint a judge or refer the case to a prosecutor for further investigation soon.
Davis’ damning interview
In an interview with Stephen Findeisen, better known as Coffeezilla, Davis answered questions about accusations of insider trading and implicated US President Donald Trump.
Days before returning to office in January, Trump launched his own meme coin $Trump, which lost $500m in market cap overnight. This drop led to accusations of insider trading, similar to those with $LIBRA.
When asked about insider trading, Davis commented: “This is an insiders’ game. It’s an unregulated casino. I thought some of these meme coins could turn into something real. But the reality is, it’s just a game. The people who know how to play win. The rest lose.”
Hayden also claims that before Trump’s token launch, a select group of investors were granted exclusive pre-sale access, valuing the coin at $500m. According to him, these investors were allowed to purchase at low prices before the contract address was made public, giving them a major advantage.
He said: “They gave people special access to buy in before it launched. That’s what I was told.”
Globally, a significant shift is occurring in which crypto is experiencing more mainstream adoption. This has been partly driven by Trump’s administration’s mission to discover ways digital currencies can grow the US economy and reduce its debt.
However, some of the comments around the $Trump and $LIBRA coins do not reflect well on the sector and solidify crypto-sceptics’ long-held viewpoints. Additionally, many people are questioning if Davis’ admissions in the interview could lead to criminal convictions.
