A law firm from Argentina filed a criminal complaint with the U.S. Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI). The complaint names individuals believed responsible for the sudden collapse of the LIBRA token, a cryptocurrency project. The firm also called for an investigation into Argentine President Javier Milei’s involvement in the downfall of the token.
In a separate development, the Civic Coalition ARI, a political party in Argentina, also filed a criminal complaint on the same day. They urged the Ministry of Justice to investigate allegations of bribery and fraud allegedly promoted by President Milei. The party stressed that the government should not be the one to investigate itself, advocating for an independent review of the situation.
The LIBRA token gained significant attention on February 14 when President Milei posted about it on social media platform X. In his now-deleted post, he emphasized that the project would fund “small Argentine businesses and start-ups,” and included the token’s contract address. This caused the value of LIBRA to rise to a $4.56 billion market cap.
These latest legal actions build on earlier criminal charges filed in Argentina, accusing President Milei of being involved in fraud for endorsing the LIBRA token. The government, however, has attempted to distance Milei from the scandal. Officials claim that Milei was “scammed” by the traders behind the token and was unaware of the project’s funding mechanism.
Argentina's President, Javier Milei, launched a new Libra crypto coin called $LIBRA, presenting it as a private initiative to help boost Argentina's struggling economy. However, things quickly took a turn for the worse, as the coin experienced a dramatic crash just five hours after its launch, wiping out a massive $4.4 billion in market value. This sudden collapse left many investors reeling and raised concerns about the Libra coin scam's impact, making people wary of potential risks in such crypto projects. The rapid loss has left many questioning new coins' viability and ability to support economies in crisis.
The rapid rise and fall of the LIBRA token has led to legal actions against President Javier Milei, with accusations of fraud and mismanagement. The $4.4 billion loss has raised concerns about the risks of unregulated crypto projects. As investigations continue, the future of both the token and Milei’s political career remains uncertain, highlighting the need for more oversight in the cryptocurrency world.
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Mohit Raghuwanshi is an Indian journalist working at Coin Gabbar’s news desk, passionately following the ever-evolving crypto market. With a keen interest in blockchain technology and digital assets, he delivers in-depth reports on industry trends, regulations, and market movements. He holds a bachelor's degree in Journalism and Mass Communication and previously worked as a content writer at a PR agency, honing his skills in crafting compelling narratives and analyzing financial markets.
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