Argentinian President Javier Milei has been accused of fraud related to the controversial LIBRA coin scandal, causing significant turmoil in the cryptocurrency market. The altcoin, supported by Milei, plummeted by 95% in value, leading investors to suffer millions in losses. Local lawyers have initiated legal proceedings against Milei due to his alleged role in the project. While the President denies the allegations, the government has announced that it will conduct its own investigation. As the situation unfolds, the legal process is quickly advancing.
Accusations Regarding LIBRA Scandal
Argentinian lawyer Jonatan Baldiviezo stated to the Associated Press, “Fraud was committed in this illegal scheme, and the president’s role was critically important.” One of the plaintiffs is economist Claudio Lozano, the former head of the Central Bank of Argentina. Another lawyer and an engineer joined the legal action, strengthening the accusations.
Milei claims he had no prior knowledge of the coin project and asserts he is not involved. However, some opposition members have called for impeachment proceedings against him in Congress. The Argentinian government has activated the Office of Corruption Prevention (OA) to conduct a thorough investigation. An official statement indicated that it would determine whether any member of the National Government, including the President, engaged in irregularities.
Significant Collapse of LIBRA Coin Value
The value of LIBRA coin significantly collapsed due to allegations that associated individuals withdrew 107 million dollars in transaction fees and liquidity pool funds. Panic was heightened when Milei withdrew his support for the project, completely shaking investor confidence. Hayden Davis, a consultant involved in the project, blamed Milei for the coin’s downfall.
Davis stated, “I am not the owner of these funds; I am merely a trustee. I do not feel comfortable transferring funds to Milei’s team or the KIP group.” However, blockchain data shows that the price was already on a downward trend. Davis mentioned that approximately 100 million dollars under his control would return to the project, with plans for purchasing and burning coins, though the timeline for fund usage remains uncertain.
A judge’s appointment is anticipated in the ongoing legal process. According to the AP, the formal commencement of the trial is imminent.
