Milei Accused of Fraud in Crypto Token Scandal
Argentinian President Javier Milei has been formally charged with fraud over his involvement in the $LIBRA token project, which collapsed by 95% from its peak value. The lawsuit, filed by a group of Argentinian lawyers and former Central Bank head Claudio Lozano, accuses Milei of playing a crucial role in an illicit scheme that defrauded investors.
Milei Denies Involvement, Launches Internal Investigation
Milei has denied any prior knowledge of the project’s financial mismanagement and maintains his innocence. His administration has launched an internal probe, vowing to involve Argentina’s Anti-Corruption Office to investigate potential misconduct within the government. Opposition leaders have seized on the scandal, calling for impeachment proceedings, further escalating political tensions in the country.
On-Chain Data Suggests Insider Trading
Project advisor Hayden Davis accused Milei of directly causing the price crash by distancing himself from the token. However, blockchain data suggests that the token had already suffered a steep decline before Milei withdrew his endorsement. Reports indicate that insiders may have cashed out $107 million in trading fees and liquidity pools before the price collapse.
Legal Proceedings Could Impact Argentina’s Crypto Policies
As the legal battle unfolds, a judge is expected to be assigned to the case soon. The scandal could have broader implications for Argentina’s economic policies, particularly as the country has previously explored deeper crypto integration under Milei’s leadership.
