- Argentine President Javier Milei faces fraud investigation over endorsement of failed Solana-based LIBRA token.
- LIBRA’s market cap reached $4 billion before crashing 95% after $87 million liquidity removal.
- Blockchain analysis platform Bubblemaps linked LIBRA creators to previous failed crypto projects.
- Argentina‘s S&P Merval index dropped 5% following the controversy.
- Federal Judge María Servini appointed to lead investigation alongside Anti-Corruption Office probe.
Argentina’s libertarian president Javier Milei faces criminal investigation over his alleged involvement in promoting a cryptocurrency that collapsed last week, causing millions in losses for investors. Federal Judge María Servini received the mandate Monday to investigate fraud charges filed by Argentine lawyers.
The controversy centers around LIBRA, a Solana-based token that Milei promoted as an initiative for economic growth. Within hours of his endorsement, the token’s market capitalization surged to $4 billion before plummeting 95% when insider wallets removed $87 million in liquidity.
Bubblemaps, a blockchain analysis platform, discovered on-chain evidence connecting LIBRA’s developers to other failed crypto launches, including January’s MELANIA token. This revelation has intensified scrutiny of the president’s involvement.
Milei’s office maintains his innocence, stating in an Associated Press report that he merely shared information about the project as he does with many entrepreneurs. In a televised interview with Todo Noticias, Milei defended his actions: “I have nothing to hide… I have no problem coming forward” to face investigations.
The incident, dubbed ‘Cryptogate’ by local media, has had broader economic implications. Argentina’s S&P Merval index experienced its steepest single-day decline since July 2023, dropping more than 5% as markets processed the news.
Economy Minister Luis Caputo attempted to minimize the situation in an interview with LPO, describing cryptocurrencies as “a tiny, infinitesimal world” while warning about the presence of “timberos” (scammers) in the space.
The investigation continues under Judge Servini’s supervision, running parallel to a separate probe by Argentina’s Anti-Corruption Office. Lawyer Jonatan Baldiviezo, one of the plaintiffs, alleges Milei’s actions were instrumental in what he describes as an organized fraud scheme.
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