Investigation into Argentina's President Regarding Cryptocurrency Token Endorsement Concludes Without Charges Filed
Argentine President Faces Ongoing Investigations Over LIBRA Token Endorsement
President Javier Milei of Argentina initially endorsed the LIBRA cryptocurrency token but later withdrew his support, stating he had no connection to the project and had failed to conduct due diligence. His endorsement coincided with a severe crash in LIBRA’s value—an 89% plunge within hours—and allegations that the token was part of a pump-and-dump ("rug pull") scheme that caused investor losses estimated at over $280 million.
Legal and investigative developments:
- A lawsuit filed in New York accuses Milei of making a "highly misleading promotional statement" that legitimated LIBRA and gave a false impression of government affiliation. This allegedly facilitated a multimillion-dollar fraud impacting tens of thousands of investors.
- The U.S. authorities have frozen $280 million in assets related to LIBRA. The token’s founder, Hayden Davis, has retroactively reclassified LIBRA as a "memecoin" without a business plan, contradicting previous investment claims and drawing heightened legal scrutiny.
- A controversial $500,000 cryptocurrency transfer to Milei during a June 2025 meeting with Davis has triggered investigations into potential financial misconduct and opaque political financing. While Milei’s administration denies official involvement, these transactions are under examination by U.S. and New York authorities, with a major hearing scheduled for August 19, 2025.
- The scandal ("Cryptogate") has exposed links between Milei, the creators of LIBRA, and intermediaries, including meetings at the Argentine Presidential Palace, and it is widely regarded as the first significant scandal of Milei’s presidency.
In summary, Milei’s endorsement has resulted in ongoing legal challenges and international investigations, primarily for alleged fraud, misrepresentation, and unexplained financial transactions. His public retraction does not exempt him from scrutiny, especially given the major investor losses and suspicious fund flows documented in the scandal.
Background:
The Libra token, developed by Delaware-based venture capital firm Kelsier Ventures, was officially launched on February 14. Within an hour of President Milei's social media endorsement, the value of the Libra token spiked from nearly zero to around $5 per unit, briefly pushing its market capitalization to an estimated $4.5 billion. Hayden Davis, CEO of Kelsier Ventures and co-creator of the Libra token, alleged that he paid Karina Milei, the president's sister, to secure Milei’s endorsement ahead of Libra's launch. The token's founders sold off their assets at peak valuation, causing a price plummet.
A US class action complaint over fraud has been filed against the creators of the Libra token. President Milei included the blockchain contract address of the Libra token in his social media post to signal his endorsement. In February, President Milei was hit with criminal fraud allegations and calls for impeachment due to his public backing of the Libra token. A separate investigation by a federal criminal court into President Milei’s endorsement of the Libra token is still underway.
This article is for informational purposes only and should not be construed as financial advice. It is essential to research thoroughly before investing in any cryptocurrency.
- The ongoing legal challenges and investigations against Argentine President Javier Milei include allegations of making misleading promotional statements about the LIBRA cryptocurrency token, which potentially facilitated a multimillion-dollar fraud and impacted tens of thousands of investors.
- The controversy over Milei's endorsement of the LIBRA token, known as "Cryptogate," has led to investigations into potential financial misconduct and opaque political financing, with a major hearing scheduled for August 19, 2025.
- In the backdrop of the scandal, there are claims that President Milei's sister, Karina Milei, received payment from Hayden Davis, the CEO of Kelsier Ventures and co-creator of the LIBRA token, to secure Javier Milei's endorsement. This endorsement was made on social media and included the LIBRA token's blockchain contract address.
