Key Points:
- Argentine lawyers charge President Milei with fraud over $LIBRA’s collapse.
- Insiders withdrew $87 million, causing $LIBRA’s value to plunge dramatically.
- The Anti-Corruption Office investigates Milei’s involvement in cryptocurrency promotion.
Lawyers have filed criminal fraud charges against Argentina President Javier Milei following his endorsement of $LIBRA cryptocurrency, which experienced a dramatic price collapse from $4,978 to under half of the dollar.
The charges cite violations of Article 265 of Argentina’s Penal Code regarding market manipulation after on-chain analysis revealed 82% of tokens were controlled by insiders who withdrew $87 million in USDC and SOL from liquidity pools. The scandal’s implications extend beyond the immediate financial losses.
$LIBRA is Disaster not Supporter for Argentina Ecnomony
In Argentina’s cryptocurrency market, a significant upheaval occurred when President Javier Milei publicly supported $LIBRA, a digital token emerging from the Viva La Libertad Project.
“This private project will be dedicated to encouraging the growth of the Argentine economy by funding small Argentine businesses and startups, said Milei“
The token initially experienced an unprecedented surge, reaching a peak value of $4,978 per unit. However, this rapid ascent was followed by a dramatic decline, with the price dropping to below one dollar within a matter of hours.
On-chain analytics indicated that a concentrated group of insiders controlled approximately 82% of the token supply, leading to the withdrawal of $87 million in USDC and SOL from liquidity pools.
This coordinated exit contributed to the subsequent market crash, ultimately resulting in substantial financial losses for investors; notably, one trader reported a loss of $2 million after making an investment of $2.85 million in LIBRA tokens.
Argentina President Javier Milei Charged with Violating Article 265 of Penal Code
Following President Milei’s endorsement of the $LIBRA cryptocurrency, Argentine lawyers have reportedly initiated criminal fraud charges against him, citing potential violations of Article 265 of Argentina’s Penal Code.
These charges arise from allegations pertaining to market manipulation and involvement in a “rug pull” scheme, which reportedly resulted in the cryptocurrency’s value plummeting from $4,978 to less than one dollar within a matter of hours.
In response to these allegations, the Anti-Corruption Office has pledged to conduct an immediate investigation into the matter, while multiple law firms are preparing to file additional lawsuits against the President.
All information gathered during the investigation will be handed over to the courts to determine whether any of the companies or individuals linked to the KIP Protocol project committed a crime. President Milei, who has demonstrated his commitment to truth through his actions, is committed to the due clarification of this incident to the ultimate consequences.
OPRArgentina wrote in a statement.
Argentina’s President Faces Impeachment Over $LIBRA Scandal
Should Milei be convicted, the ramifications could include impeachment and removal from office, as this incident has provoked significant political and legal consequences within the Argentine governance framework.
Opposition leaders and civic organizations are actively calling for his impeachment. The controversy has initiated formal proceedings under Article 265 of Argentina’s Penal Code, which the punishment could range from 1 to 6 years in prison.
Constitutional scholars indicate that a guilty verdict on fraud charges could result in Milei’s removal from office. The Anti-Corruption Office is currently conducting an investigation, with potential evidence suggesting his direct involvement in promoting the cryptocurrency.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Latest
Press Release
Bybit Named Exclusive Payment Partner for Tomorrowland Brasil 2025-26, Launches Cardholder Presale
As ETH Sepolia Issue Worries Grow & AVAX Faces Bearish Signal, BlockDAG’s $205M Raise & SpaceDev Deal Lead the Way
