- Milei endorsed a token that shot up and then suddenly plummeted, sparking controversy.
- Legal complaints say Milei had a big role in the financial losses that investors faced.
- A few lawmakers proposed Milei’s impeachment as the government continued its investigation.
Following up on the scandal, President Javier Milei faces fraud allegations after promoting the $LIBRA token, which saw a quick rise and subsequent crash. His endorsement on social media led the token’s market capitalization to surge $4.56 billion before plummeting by over 94%. Investors suffered heavy losses, prompting legal action against Milei. Despite deleting his post and claiming he was unaware of the project’s details, legal experts argued that his involvement significantly influenced the token’s extreme volatility.
Legal Battle and Criminal Complaints
Attorneys Marcos Zelaya, Jonatan Baldiviezo, economist Claudio Lozano, and engineer María Eva Koutsovitis filed a criminal complaint against Milei, alleging fraud. They claim that Milei served a duty in misleading investors within an “illicit association.” The case will now be assigned to a judge or transferred to a prosecutor for further legal proceedings.
Additionally, Argentina lawyer Agustín Rombolá has filed a case against Milei, citing fraud, financial crimes, price alteration, and violations of Public Ethics Law. This legislation tells officials to disclose any interests or conflicts. Agustine, a political party Unión Cívica Radical member, accused Milei of leveraging his influence to manipulate the market, raising concerns over ethical misconduct.
Dave Portnoy’s Connection to $LIBRA
The controversy surrounding $LIBRA deepened when Barstool Sports founder Dave Portnoy revealed his involvement in the project. He disclosed that he was promised over six million $LIBRA tokens in exchange for supporting the cryptocurrency. However, he returned the tokens to the project’s founder, Hayden Mark Davis, after he was prohibited from disclosing the agreement.
Despite returning the tokens, Portnoy later purchased $LIBRA tokens, which lost value, following the dip. While he faced no direct backlash from Davis, the revelation underscored the conflicts of interest when public figures endorsed assets. Meanwhile, Davis accused Milei of abandoning the project and blamed him for the collapse of the token.
Related: Milei’s LIBRA Token Faces Pump-and-Dump Allegations
Political Fallout and Impeachment Threats
Opposition Congress, including Leandro Santoro, has called for impeachment proceedings against Milei, labeling the incident a “scandal without precedent.” They argued that his involvement in the coin’s rise and fall has damaged investor confidence, further pushing for a formal investigation.
Meanwhile, opposition lawmaker Leandro Santoro stated that the scandal had brought embarrassment to the nation among its allies and strongly requested an impeachment against the President. Further, the government launched an inquiry to determine if any officials were engaged in misconduct while promoting the token. Investors panicked after Milei distanced himself from $LIBRA, triggering further instability. Speculations are rife concerning Milei’s presidency and Argentina’s political upcoming developments as the case is being scrutinized.
