The scandal that broke out over the weekend after the $LIBRA token, which was first promoted by Argentine President Javier Milei, plummeted 95% in value, has reportedly been escalated by the country’s lawyers accusing Milei of fraud.
Lawsuit filed against President Javier Milei and others
Plaintiff Jonatan Baldiviezo told the Associated Press the president’s actions were essential to the crime of fraud that was committed within this illicit association. A lawyer, an engineer, and economist Claudio Lozano, the former head of Argentina’s Central Bank, are also plaintiffs in the case.
The decision by the president to stop supporting the project caused investors to lose faith in it, which in turn caused the price to plummet, according to the project advisor Hayden Davis.
On-chain data, however, indicates that the price had already dropped sharply from its peak when Milei withdrew his endorsement; rumors that insiders in the token project had cashed out $107 million in trading fees and liquidity pool funds appeared to have triggered an earlier selling wave. In his statement, project advisor Hayden Davis made reference to the money, stating that he intends to purchase and burn the token in order to reinvest “as much as $100 million,” or the funds under his control, back into the project.
According to the AP, a judge could be assigned to the case as early as tomorrow.
Milei accuses opponents of exploiting the situation
Milei has denied knowing about the token project beforehand and maintained his innocence in the scandal. His administration announced yesterday that it would begin its own investigation into the token project, in response to demands from some of his political rivals for an impeachment trial.
“Given the facts, President Javier Milei has decided to immediately involve the Anti-Corruption Office (OA) to determine whether there was improper conduct on the part of any member of the National Government, including the President himself,” according to a translation of his statement.
Milei stated on X that he was not aware of the currency’s development after deleting the initial promotion of the post announcing the launch of KIP Protocol’s project, and he accused his political rivals of attempting to take advantage of the incident.
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