Javier Milei's LIBRA Endorsement: What Went Wrong?

Argentine President Javier Milei is facing serious fraud allegations over his promotion of the LIBRA token, a cryptocurrency that collapsed within hours after launching, per AP News.

The LIBRA token, created by KIP Protocol and Hayden Davis, was available through a link directing users to vivalalibertadproject(.)com, a website named after Milei’s signature slogan.

Legal experts claim that Milei’s endorsement played a key role in what they describe as an illicit scheme resembling a classic "rug pull."

Legal Action and Allegations

Jonatan Baldiviezo, a lawyer representing the plaintiffs, accuses Milei of participating in an "illicit association" aimed at defrauding investors. The lawsuit, co-signed by multiple legal and financial professionals, argues that the president’s actions were essential in misleading the public.

The case is now under review by Argentina’s criminal justice system, which is expected to assign a judge or refer the matter to a prosecutor for further investigation.

What Happened with LIBRA?

The LIBRA token, developed on the Solana blockchain, saw an explosive rise in value after Milei publicly endorsed it on X (formerly Twitter). The token briefly hit a market capitalization of $4.56 billion on February 14. However, within just 11 hours, its value plummeted by over 94%, falling to $257 million.

At least eight wallets associated with the LIBRA team snatched $107 million before the crash, according to Lookonchain. They pocketed 57.6 million USD Coin and 249,671 Solana worth $49.7 million. These insiders allegedly withdrew liquidity and profited massively before the public realized what was happening.

Milei’s Response: Denial and Counterattack

After deleting his promotional post, Milei claimed he was unaware of the project’s details and had no direct involvement. He later accused his political opponents of exploiting the situation to damage his reputation.

“To the filthy rats of the political caste who want to take advantage of this situation, I want to say that every day they confirm how vile politicians are,” Milei wrote on X and later deleted.

His administration has since requested the country’s Anti-Corruption Office to investigate all government members, including Milei himself.

The President’s Office stated that the Anti-Corruption Office, operating under the Executive Branch, would take immediate action. It also confirmed that Milei and his team recently met with KIP Protocol representatives at the presidential office.

“All the information gathered in the investigation will be handed over to the judiciary to determine if any of the companies or individuals linked to the KIP Protocol project committed a crime,” the Milei administration said in the Saturday statement

Blockchain Data Confirms Insider Activity

On-chain analysis reveals that insider wallets began dumping tokens just three hours after LIBRA debuted on decentralized exchanges. Bubblemaps, a blockchain analytics firm, warned that 82% of LIBRA’s supply was unlocked and sellable from the start—an immediate red flag.

Further analysis suggests that the LIBRA project is linked to another controversial token, MELANIA. The same wallet that profited $2.4 million from MELANIA reportedly made $6 million from LIBRA before the collapse.

Risk of Impeachment?

The scandal has triggered political turmoil in Argentina. Opposition lawmaker Leandro Santoro has called for Milei’s impeachment, stating that the LIBRA controversy has embarrassed the country on an international scale.

Meanwhile, Argentina’s fintech chamber has acknowledged that the situation resembles a textbook rug pull, adding further pressure on Milei’s administration.