Argentine President Milei Faces Investigation Over LIBRA Token Promotion

• Argentina’s President Milei is under investigation after endorsing LIBRA, a token that surged before crashing.
• Prosecutors are seeking to freeze LIBRA-related assets after early investors cashed out before the price collapse.
• Milei previously faced a lawsuit for promoting CoinX, a platform that allegedly misled investors with high-return promises.

Argentine President Javier Milei is under investigation after promoting the Solana-based meme token LIBRA. The lead prosecutor in the case, Eduardo Taiano, has requested the freezing of assets connected to the project and the recovery of deleted social media posts. The investigation includes examining transactions tied to LIBRA, which saw a sharp increase in value before collapsing. 

LIBRA’s Surge and Collapse

LIBRA reached a market capitalization of $4.5 billion after Milei promoted it in a social media post last month. The president claimed that the token would support Argentina’s economy by funding small businesses and startups. 

Just after his approval, LIBRA’s value soared , attracting significant attention from investors. However, the token’s price plummeted soon after, raising concerns about potential manipulation.

Before the collapse, a group of wallets holding a large portion of the token supply liquidated their holdings. Crypto entrepreneur Hayden Davis, associated with marketing firm Kelsier, disclosed that he secured $100 million from the project. As LIBRA lost value, accusations emerged regarding a possible pump-and-dump scheme, leading to legal scrutiny.

Legal Actions and Asset Freezing Requests

Following LIBRA’s collapse, Milei deleted his promotional post, and fraud charges were filed against him. Prosecutor Taiano has called for cooperation from international exchanges and regulators to freeze related funds as noted by Wu Blockchain post on X.

Argentine newspaper Clarín reported that law enforcement agencies are now involved in tracking the movement of assets. Officials are investigating whether insider trading or misleading promotion played a role in LIBRA’s rapid rise and fall.

This is not the first time Milei has faced cryptocurrency-related legal matters. In 2022, before taking office, he was sued for endorsing CoinX, a platform that allegedly promised high returns to investors. The current case adds to the growing scrutiny over political figures engaging with speculative digital assets.