Argentina’s President Javier Milei Faces Fraud Charges Over LIBRA Token Scandal

President Javier Milei of Argentina is facing fraud charges following the collapse of the $LIBRA token, which he previously promoted. The token plummeted 95% in value, sparking allegations of misconduct and calls for an official investigation.

Legal Battle Unfolds

The lawsuit, filed by Jonatan Baldiviezo and Claudio Lozano, accuses Milei of involvement in an illicit association that enabled fraud. Lozano, an economist and former head of Argentina’s Central Bank, is among the plaintiffs. Despite the charges, Milei denies prior knowledge of the token's operations and maintains his innocence.

Government Investigation and Political Fallout

In response to mounting pressure, Milei announced that the Anti-Corruption Office (OA) would launch an internal investigation, which could include an inquiry into Milei’s own conduct. Meanwhile, opposition leaders are pushing for a potential impeachment trial.

"President Milei has directed the Anti-Corruption Office to investigate any misconduct within the government, including his own actions," read the official statement.

Advisor’s Accusations and On-Chain Revelations

Hayden Davis, an advisor to the LIBRA project, blamed Milei for the crash, stating that his sudden withdrawal of support caused panic selling. Davis also revealed his reluctance to transfer project funds to Milei’s associates, claiming he would instead use up to $100 million to buy and burn tokens, aiming to revive the project’s value.

However, on-chain data indicates that the price drop began before Milei’s retraction, reportedly triggered by insiders cashing out $107 million in trading fees and liquidity pool withdrawals.