YEREVAN (CoinChapter.com) – Argentine President Javier Milei is facing fraud charges for his support of LIBRA, a Solana-based meme coin that plunged more than 90% shortly after its launch. Legal experts, politicians, and financial analysts are scrutinizing the incident, expressing concerns about Milei’s involvement and the broader risks posed by politicians promoting cryptocurrency projects.

How the LIBRA scam became a national scandal
On February 14, 2025, Javier Mile endorsed LIBRA on his X account, saying it was an economic project that could benefit Argentina. His statement caused the price of $LIBRA to surge, bringing its market value to approximately $4.56 billion.



However, the token’s value plummeted within hours, wiping out nearly all of the investor’s funds. Blockchain analysts tracked internal activity, showing that wallets associated with the LIBRA scam development team liquidated $107 million in assets before the crash.



The sudden collapse sparked public outrage, with many accusing Milet of misleading investors. Critics argued that Milet's endorsement gave $LIBRA legitimacy, leading unsuspecting buyers to invest. After the collapse, Milet deleted his promotional posts, but the damage was done.

Fraud charges and legal action against Javier Millais
Argentine lawyers Jonatan Baldiviezo and Marcos Zelaya have filed a criminal complaint against Javier Millay, accusing him of participating in a fraud scheme. According to legal documents, Millay's involvement violated Argentina's public ethics law, which prohibits public officials from participating in financial schemes that could harm the public.
Baldivizzo said:
“In this illegal association, a crime of fraud was committed, and the president’s actions were crucial.”
He also stressed that Miley’s posts encouraged thousands of Argentines to invest in a possible “pump and dump” project.
The indictment alleges that Milley’s promotion of $LIBRA was not an accidental move, but rather a calculated effort to inflate its value before insiders sold their holdings. Investigators are currently examining the project’s financial records, including the connections between its developers and Milley’s political insiders.

Argentine lawmaker Gabriela Estevez accused President Javier Milley of orchestrating a "pump and dump" scheme, calling it a serious financial fraud aimed at manipulating market prices for personal gain.
“What the president did is called a pump and dump, and it’s a serious financial fraud,”
Estevez said.
“Cryptocurrency creators buy large quantities of tokens at a low initial price. They then artificially inflate their value by misleading investors with false claims about their potential. Once the price surges, they sell off their holdings, triggering a sharp decline that leaves other investors with significant losses.”

Impeachment threats grow as Milley crypto scandal looms
The controversy over $LIBRA has sparked an impeachment effort against President Javier Milley. One political faction has initiated proceedings, saying the scandal is unprecedented in Argentina's history.
"Our national delegation has decided to move forward with the impeachment petition against the president of our country,"
Diputados UP announced on X.



Meanwhile, Buenos Aires Governor Axel Kicillof condemned the incident, calling it a massive financial fraud. He warned that both Argentine and international investors were being misled. Kicillof also likened the situation to a pyramid scheme in cryptocurrencies, highlighting the risks of unregulated digital assets.



Opposition leaders seized on the controversy. Lawmaker Leandro Santoro said:
"This scandal, which embarrasses us on the international stage, requires us to initiate impeachment proceedings against the president."

New legal complaint filed against Miley for promoting LIBRA
Argentinian lawyer Agustín Rombolá, founder and partner of the Rombolá Mancioni law firm, has filed a separate legal complaint against President Javier Millé for promoting $LIBRA.
In a statement on Feb. 16, Lombola, a member of the political party Unión Cívica Radical, announced that he had filed a report against Mile for suspected fraud, price manipulation, financial crimes, and transactions incompatible with public office. He also said that his firm is preparing a class action lawsuit for investors who lost funds after the token crash.



The Argentine president’s office has not yet responded to a request for comment. However, following the sharp drop in the coin, Mile has asked the anti-corruption office to investigate all government officials, including himself, for potential wrongdoing. According to a statement from the president’s office, the results of the investigation will be shared with the court.
The office also claimed that Milet was unaware of the details of the project when he backed it and had no connection with the company behind the token. However, Milet later confirmed that he met with representatives of KIP Protocol in Argentina on October 19, who introduced him to the blockchain project.

Javier Millais’ LIBRA background and connection to KIP Protocol
KIP Protocol, a Web3 company focused on AI-powered payment infrastructure, has admitted its involvement in the Libertad project involving the $LIBRA token, which experienced a major crash shortly after its launch, losing more than 95% in value.



KIP Protocol CEO and co-founder Julian Peh clarified in a statement on February 15 that the company served as a technical advisor in the project, with the responsibility of assisting in distributing project funds to local businesses in Argentina. Peh emphasized that KIP Protocol did not create the $LIBRA token or serve as its market maker. He also stated that the company did not profit from the token sale.
Despite the token crash, Pech confirmed that KIP Protocol will continue to support the Libertad project. The program aims to provide financial support to small businesses and startups in Argentina, in line with the original intention of the project.



Data from Bubblemaps shows that $LIBRA’s total supply of 50% is concentrated in a single wallet.
The on-chain analytics firm also warned that at least 82%’s token supply remains unlocked, meaning it could be sold at any time, posing a significant risk to investors.

The aftermath of the LIBRA scam: investigations and market reactions
Following the collapse of $LIBRA, Argentina’s anti-corruption office announced a formal investigation into whether Millet or his associates had benefited financially from the rise and fall of the token.
Meanwhile, crypto markets have reacted violently to the scandal. The collapse of $LIBRA sparked panic among retail investors, leading to a sell-off in other altcoins. Analysts warn that such incidents could lead to stricter regulations, especially against politicians' support for digital assets.
The investigation into $LIBRA is ongoing. If evidence proves that Milley had financial ties to the project, he could face serious legal consequences, including possible removal from office.