Argentine President Javier Milei is facing criminal fraud charges following his promotion of the cryptocurrency LIBRA

Argentine President Javier Milei is facing criminal fraud charges following his promotion of the cryptocurrency $LIBRA (Libra Protocol), which experienced a dramatic collapse in value shortly after his endorsement according to AP.

The charges were filed by a group of Argentine lawyers on February 16, 2025, including former Central Bank head Claudio Lozano, who allege that Milei's actions constituted fraud within an illicit association.

They allege that his promotion of $LIBRA on social media constituted an illicit association aimed at committing fraud, leading to substantial financial losses for investors after the token's value collapsed shortly after his endorsement

On Friday, President Milei promoted $LIBRA on his social media, describing it as a private initiative aimed at stimulating Argentina's economy by funding small businesses and startups.

The endorsement led to a rapid surge in the token's value, reaching a market capitalization of approximately $4.5 billion. However, within hours, the token's value plummeted by 96%.

This rapid decline has drawn comparisons to a "rug pull," a term used for scams where developers attract investments and then vanish.

Following the crash, Milei deleted his original post and stated that he was unaware of the project's details, deciding to withdraw his support to prevent further speculation.

The President's Office emphasized that Milei was not involved in the development of the cryptocurrency and has pledged to cooperate with investigations.

Hayden Mark Davis, an advisor to the $LIBRA project, accused President Milei of causing the token's collapse by unexpectedly withdrawing his support and deleting related social media posts. Davis claimed that this sudden reversal led to panic among investors and a massive sell-off.

In response to the controversy, Argentina's Anti-Corruption Office has announced an investigation into President Milei and his cabinet to determine if there was any misconduct related to the promotion of $LIBRA. The investigation aims to assess whether any members of the National Government, including the President, engaged in improper conduct.

The legal proceedings are ongoing, with a judge expected to be assigned to the case or refer it to a prosecutor for further investigation.