Javier Milei, President of Argentina, is facing legal challenges over the sudden collapse of the Libra token, with allegations of fraud following the token’s rapid devaluation after he deleted social media posts endorsing it, according to the Associated Press.
The lawsuit claims that Milei’s removal of his supportive messages caused the token’s value to plummet, resulting in a ‘rug pull’ that left investors in financial distress. In response, Milei’s office has stated that the president was unaware of the token’s specific details and that his involvement was limited to promoting local entrepreneurial initiatives, as he does for many projects in Argentina.
“The President shared a post about the KIP Protocol’s project just as he does with many other Argentine startups,” said a spokesperson for Milei’s office. “His intent was to help create jobs and attract investment for Argentina’s economy.” They also noted that Milei had met with the project team at his office, but did not directly manage its operations.
As of now, no formal charges have been made against Milei, with Argentine prosecutors scheduled to meet on Monday to determine whether the case should proceed. Blockchain investigators have also found evidence suggesting a link between the teams behind the Libra and Melania tokens, noting similarities in wallet addresses used by both projects.
