Milei Faces Allegations of Fraud After a Cryptocurrency Plunged in Value

Javier Mieli speaks at the World Economic Forum in 2014. (Flickr)

Argentine President Javier Milei faces investigation of fraud after promoting a cryptocurrency, which plunged in value within hours on February 14, 2025. The crash is believed to have impacted 40,000 people and caused a loss of up to $4 million dollars. 

The President tweeted on X on the launch of the $LIBRA crypto coin, which he claimed would boost economic growth by aiding small businesses. The post was taken down a few hours after the coin’s collapse, resulting in loss of millions for its investors. According to Opposition leader Martín Lousteau, this marks the second time that Milei has promoted crypto that ended up as a sam. 

Milei denied any involvement in the promotion of the crypto currency and claims his actions were done in good faith. His office added the post was taken down to “avoid speculation and limit exposure.”  

"Someone who comes to me and proposes the creation of an instrument to finance projects is interesting to me,” Milei said to Broadcast TN. “For wanting to give a hand to Argentines, I got slapped in the face.”

According to the President’s office, the national Anti-Corruption Office will be assigned to determine if “any improper conduct was committed by a member of the national government, including the President himself.”

Milei claimed that he has “nothing to hide” in face of the investigation and that those that invested were aware of the risks involved.  

However, Lawyers from the Right to the City Observatory and economist Claudio Loranzo filed a fraud report against Milei and KIP Executive Officer Julain Peh whose company was involved in the project. 

Within this illicit association, the crime of fraud was committed, in which the President’s actions were essential,” one of the plaintiffs said.

According to the report, Milei and Peh met last October at the Techforum in Buenos Aires. However, KIP Protocol claimed that their conversation did not mention any specific projects. The company also posted on X that it had no direct involvement with the launch and assured its focus on infrastructure and innovation.

The plaintiffs have also criticized Milei for “rug pull,” where developers encourage investment only to halt the project after the token becomes overpriced. Others identified that the website that sold the cryptocurrency, vivalalibertadproject.com, shares the same name as Milei’s slogan, “Long live liberty!”  

Federal Judge Maria Serini was randomly selected to review the following Monday as more than 100 complaints have been filed to both domestic and foreign courts.  

Mexico’s President Claudia Sheinbaum warned that the case “is extremely serious if confirmed, especially in terms of a President’s powers to promote something private.” 

Meanwhile, the President’s political opposition pushes calls for his impeachment, claiming his actions as an “unprecedented scandal.” According to experts, it is unlikely the impeachment call will pass through, but it could undermine Milei’s credibility in light of the 2025 midterm election.