A Judge Investigates President Milei’s Role in the $LIBRA Cryptocurrency Scandal

The Judge Assigned to Investigate

A federal judge in Argentina, Maria Servini, has been randomly selected to lead an investigation into President Javier Milei’s alleged involvement with the cryptocurrency $LIBRA. The probe aims to determine whether Milei engaged in illegal activities by promoting the cryptocurrency, which has been at the center of a brewing scandal. The investigation comes after opposition politicians raised concerns that Milei could potentially face impeachment proceedings, depending on the outcomes of the inquiry.

The scandal began on Friday when $LIBRA was launched. President Milei had used his social media account on X to promote the cryptocurrency, touting it as a tool for "economic growth by funding small businesses and startups." His endorsement helped $LIBRA temporarily reach a market capitalization of $4 billion. However, its value quickly plummeted, leading many to label it a hoax or scam.

The Cryptocurrency’s Rise and Fall

As $LIBRA’s value began to collapse, Milei deleted his promotional post, sparking criticism. Many accused him of being involved in a "rug pull" scam, a scheme in which initial investors artificially inflate the value of a cryptocurrency before abruptly withdrawing their support, causing the currency to crash. Victims of such scams are often left with worthless coins, while the orchestrators profit from the peak value.

By Saturday, Milei’s office released a statement distancing the president from $LIBRA. The statement emphasized that Milei was not involved in the development of the cryptocurrency but had merely promoted it as part of his broader support for business ventures under his free-market platform. The statement explained, "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."

Despite this, critics pointed out that $LIBRA was sold on a website using Milei’s slogan, "Long Live Liberty!" Many accused Milei of being directly involved in the scheme. Jonatan Baldiviezo, a lawyer and one of the plaintiffs in a lawsuit filed against Milei, told The Associated Press, "Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential."

$LIBRA Developers Distance Themselves from Milei

Hayden Davis, one of the developers of $LIBRA, appeared to shift blame onto Milei for the cryptocurrency’s sudden collapse. In a video statement, Davis claimed that Milei and his team had unexpectedly withdrawn their support for the project, deleting all previous promotional posts on social media. This abrupt change in stance, according to Davis, contributed to the rapid decline in $LIBRA’s value.

Meanwhile, a local NGO, Observatorio del Derecho a la Ciudad, filed a lawsuit accusing Milei of being part of an illicit association that orchestrated the $LIBRA scam. The NGO alleged that over 40,000 people lost more than $4 billion due to the scheme. "We denounce Milei as being part of an illicit association that organized a scam with the $LIBRA cryptocurrency," the NGO stated on its website.

Milei’s Office Defends His Actions

Milei’s office defended his actions, asserting that he was a victim of the situation rather than a perpetrator. An anonymous government official told Reuters, "The only one on the face of this earth who was cheated is Milei." The official explained that Milei frequently promotes private projects as part of his free-market agenda and had no involvement in the development or operational aspects of $LIBRA.

In a social media post late on Friday, Milei himself blamed his political opponents for the uproar, writing, "This increases our conviction to kick them in the [a**]." His defiant tone suggested that he viewed the scandal as a political attack rather than a legitimate concern.

$LIBRA Fraud Allegations Intensify

Despite Milei’s denial of wrongdoing, the allegations against him have intensified. Critics argue that his promotion of $LIBRA, even if unintentional, created a perception of legitimacy that misled investors. Many who invested in the cryptocurrency feel betrayed, especially after its value plummeted.

Legal experts, however, believe it is unlikely that Milei will face impeachment over the scandal. They argue that while the controversy may damage his economic credibility, particularly ahead of the 2025 midterm elections, the evidence currently available does not seem sufficient to warrant impeachment proceedings.

Potential Fallout for Milei’s Presidency

The $LIBRA scandal has sparked widespread outrage and raised questions about Milei’s judgment and accountability. While impeachment remains an unlikely outcome, the controversy could have significant political repercussions. Critics accuse Milei of prioritizing his free-market ideology over the financial well-being of Argentine citizens.

The situation has also highlighted the risks associated with cryptocurrency investments, particularly when endorsed by public figures. Many are calling for greater regulation of cryptocurrencies to protect investors from fraudulent schemes.

In conclusion, the $LIBRA scandal has cast a shadow over President Milei’s presidency, with critics accusing him of involvement in a fraudulent scheme. While the investigation is ongoing, the controversy has already begun to erode trust in Milei’s leadership and his economic policies. The outcome of the probe will be crucial in determining the future of his presidency and his political legacy.