ARGENTINE PRESIDENT JAVIER MILEI FACES FRAUD CHARGES OVER LIBRA TOKEN PROMOTION

- Argentine President Javier Milei is charged for promoting the $LIBRA token, which collapsed by 94% in just 11 hours, per AP News. A lawsuit accuses him of being part of an illicit association to commit fraud.

What Happened?

- On Feb. 14, Milei posted on X (formerly Twitter) endorsing LIBRA, a Solana-based token linked to KIP Protocol.

- Following his post, LIBRA’s market cap surged to $4.56 billion within hours. The next day, LIBRA crashed to $257 million, with insiders cashing out $107 million before the collapse.

- Lawyer Jonatan Baldiviezo and other plaintiffs accuse Milei of participating in a rug pull. The lawsuit claims Milei’s endorsement was crucial to attracting investors before insiders dumped the token.

Blockchain Data Exposes LIBRA’s Flaws

- Onchain analysis by Lookonchain revealed 8 insider wallets linked to the project withdrew $107M in USDC and SOL.

- Bubblemaps warned that 82% of LIBRA’s total supply was unlocked from the start. LIBRA’s developer wallets were also tied to Melania Trump’s $MELANIA token.

Milei’s Response

- After deleting his post, Milei denied any connection to the project. He blamed political opponents for using the scandal to attack him.

- The Anti-Corruption Office is investigating the case, including potential misconduct within Milei’s administration.

- According to AP News, the administration has acknowledged that KIP Protocol representatives met with Milei recently at the presidential office.

- The judiciary will decide whether to proceed with charges that could lead to impeachment.

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