Investors Lose Millions After Milei’s Crypto Promotion—What Really Happened
Argentina’s President Javier Milei Faces Fraud Charges Over Crypto Promotion
Did Milei Just “Rug Pull” His Followers? The Crypto Controversy Explained
Argentine President Javier Milei is facing fraud charges after promoting a controversial cryptocurrency called $LIBRA on social media, only to delete his post hours later—causing the token’s value to crash.
Now, a group of Argentine lawyers has filed a criminal complaint, accusing Milei of being part of a fraudulent scheme known in the crypto world as a “rug pull.”
But was Milei truly involved in a scam, or was this just a misunderstanding? Let’s break it down.
Milei Promotes $LIBRA, Then Deletes His Post
On Friday, President Milei posted on X (formerly Twitter) about $LIBRA, a cryptocurrency he claimed was designed to boost Argentina’s economy by funding small businesses and startups.
However, just a few hours later, Milei deleted the post—and $LIBRA’s price collapsed, wiping out millions of dollars in investor funds.
The situation quickly escalated, with investors accusing Milei of misleading them and lawyers filing charges in Argentina’s criminal court.
Why Are Lawyers Accusing Milei of Fraud?
Lawyers Jonatan Baldiviezo and Marcos Zelaya, along with economist Claudio Lozano and engineer María Eva Koutsovitis, claim Milei played a key role in a fraudulent operation.
They argue that this could be a classic “rug pull” scheme, where a project is hyped up to attract investors, only for its creators to abandon it after cashing out, leaving the token worthless.
They also say Milei violated Argentina’s Public Ethics Law, which prevents government officials from promoting private business interests for personal gain.
The case is expected to be assigned to a judge or prosecutor for further investigation.
What Was $LIBRA, and Who Created It?
$LIBRA was launched by KIP Protocol, a company associated with Hayden Mark Davis. The token could be obtained through a website called vivalalibertadproject.com, which referenced Milei’s famous slogan: “Viva la libertad!”
Given this connection, many believed Milei had officially endorsed the project—leading to heavy investment.
However, after the crypto’s collapse, Milei’s administration released a statement saying:
. Milei had no involvement in developing $LIBRA.
. He deleted the post to prevent further speculation.
. He meets with many entrepreneurs daily and didn’t intend to promote a scam.
Did Milei’s Actions Crash $LIBRA?
After the controversy, Hayden Mark Davis, the creator of KIP Protocol, directly blamed Milei for the token’s collapse.
In a video posted on social media, Davis claimed:
. Milei’s sudden withdrawal of support caused investors to panic and sell.
. His team had initially supported the project but unexpectedly changed their stance.
Meanwhile, Milei defended himself, stating:
“I was not aware of the details of the project, and after getting informed, I decided not to continue promoting it.”
He also accused his political opponents of using the controversy to attack him.
What Happens Next?
Milei’s government announced that Argentina’s Anti-Corruption Office will investigate the incident and turn over findings to the judiciary.
The administration also admitted that Milei and his team met with KIP Protocol representatives before the token’s launch, raising more questions about his involvement.
If found guilty of fraud or ethics violations, Milei could face serious legal and political consequences.
What This Means for Crypto Investors
. Always Research Before Investing – Just because a public figure endorses a crypto project doesn’t mean it’s legitimate.
. Beware of Hype-Driven Investments – If a token skyrockets overnight, it can collapse just as fast.
. Crypto Volatility Is Real – Political figures, influencers, and businesses can all impact prices.
. Regulation Matters – This case may push Argentina toward stricter crypto regulations to protect investors.
Was This a Scam or a Mistake?
The legal case against Javier Milei is just beginning, and whether he’s guilty of fraud or simply made a bad judgment call remains to be seen.
One thing is clear: This controversy has shaken Argentina’s crypto scene and raised major concerns about the risks of political endorsements in the crypto world.
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