Catenaa, Monday, February 17, 2025 – Argentine President Javier Milei has been charged with fraud in connection with the $LIBRA cryptocurrency scandal, as the token crashed 95% from its peak. The charges were brought by Argentine lawyers and former central bank chief Claudio Lozano, alleging Milei’s involvement in an “illicit association.”
Attorney Jonatan Baldiviezo, has reportedly claimed Milei’s role was “essential” in the alleged fraud.
The lawsuit follows Milei’s previous promotion of the token, which sparked widespread investor interest before his abrupt withdrawal of support.
However, Milei retracting his statement on Saturday denied prior knowledge of the project and announced that Argentina’s Anti-Corruption Office would investigate any potential wrongdoing, including by members of his administration. Calls for his impeachment have grown among opposition leaders.
Project advisor Hayden Davis accused Milei of triggering the sell-off, arguing that his disavowal of the token led to a loss of investor confidence.
However, blockchain data suggests the decline began before Milei’s statement, amid reports that insiders withdrew $107 million from trading fees and liquidity pools.
Earlier Barstool Portnoy said he was set to advise on the $LIBRA memecoin and had purchased the token, but returned 6 million gifted tokens after being told not to disclose them. He claimed Davis reversed course after Milei distanced himself from the project. However reports said that the document does not quote Milei directly but states he withdrew his support for $LIBRA, leading to calls for his impeachment from rivals.
His apparent endorsement had driven early enthusiasm, but his reversal triggered panic selling, causing the token’s price to plummet. The focus remains on Portnoy and Davis’s response following Milei’s disavowal.
Davis, who claims to control up to $100 million in project funds, stated he intends to reinvest by repurchasing and burning tokens.
