An Argentine judge has been assigned to investigate fraud allegations against President Javier Milei, following his brief promotion of a cryptocurrency, $LIBRA, which collapsed within hours of its launch last week.
On Monday, Judge María Servini, head of Federal Court No. 1 in Buenos Aires, was selected to handle the fraud case filed by Argentine lawyers against Milei. There is no set deadline for her investigation.
Milei has denied any wrongdoing, stating he acted in good faith and was not involved in the development of the cryptocurrency.
On Friday, Milei endorsed $LIBRA on social media, calling it an initiative aimed at “encouraging economic growth by funding small businesses and startups.”
His promotion triggered a surge in the cryptocurrency’s value, briefly pushing its market capitalization above $4 billion.
However, its value quickly plummeted, with critics warning it could be a scam. Amid the collapse, Milei deleted his post within hours, leaving investors facing millions in losses.
$LIBRA was developed by KIP Protocol and Hayden Davis and could be acquired through a website linked to “Viva la Libertad Project”, referencing Milei’s signature campaign slogan.
Milei’s office issued a statement clarifying that:
- The president was not involved in the cryptocurrency’s development.
- His post was removed to avoid speculation and limit further exposure after public backlash.
As Judge Servini’s investigation unfolds, the cryptocurrency scandal has added a new layer of controversy to Milei’s presidency, raising questions about his judgment and potential legal consequences.
