Milei’s Endorsement of $LIBRA Ends in Controversy
Argentine President Javier Milei is facing legal scrutiny after promoting the cryptocurrency $LIBRA, which suffered a dramatic collapse, leading to heavy investor losses. On February 14, 2025, Milei took to social media platform X (formerly Twitter) to endorse $LIBRA, calling it a project designed to “encourage economic growth by funding small businesses and startups.” However, within hours, the cryptocurrency’s value plummeted, wiping out significant investments.
Legal Action and Fraud Allegations
Following the financial fallout, a group of Argentine legal and economic experts, including lawyers Jonatan Baldiviezo and Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano, filed fraud charges against Milei in a criminal court. The plaintiffs argue that Milei’s promotion of $LIBRA amounted to an “illicit association to commit an indeterminate number of frauds.” They claim his endorsement played a key role in what they allege was a fraudulent scheme.
In response to the controversy, the President’s Office issued a statement denying Milei’s direct involvement in the creation or operation of $LIBRA. The statement also clarified that he removed his promotional post to prevent further speculation. Milei later explained on X that he was initially unaware of the project’s full details and chose to withdraw his endorsement after learning more.
Accusations from KIP Protocol
Hayden Mark Davis, a representative of KIP Protocol, the company behind $LIBRA, placed blame on Milei for the cryptocurrency’s collapse. Davis alleged that Milei abruptly withdrew support despite prior commitments, causing panic and a subsequent price crash. He claimed that the administration not only reversed its stance but also erased all previous endorsements from social media.
Argentina’s Anti-Corruption Office has launched an investigation into the incident, examining Milei and his cabinet to determine if any misconduct occurred. The government has pledged full cooperation, providing all relevant information to judicial authorities.
This case has reignited a broader debate over the ethical responsibilities of public officials when endorsing financial products, particularly highly speculative assets like cryptocurrencies. The outcome of these legal proceedings could set a precedent for future cases, potentially shaping the way political figures engage with financial endorsements.
