Milei Denies LIBRA Endorsement Amid Fraud Allegations and Market Chaos

• LIBRA token collapse sparks fraud claims and calls for Milei’s impeachment
• Milei denies endorsing LIBRA and says few real investors were affected
• LIBRA scandal leads to legal probes and a drop in Argentina’s stock market

Argentina’s President Javier Milei is facing a lot of pressure following his involvement in the LIBRA token controversy. The cryptocurrency which launched under the Libertad project, surged to a $4.56 billion market cap after Milei promoted it on social media. The token’s value crashed by 94% shortly after he deleted his post, leaving investors with massive losses. 

The sudden collapse has sparked accusations of a pump-and-dump scheme and multiple fraud lawsuits have been filed against Milei. Opposition leaders are demanding his impeachment, claiming his actions misled the public and caused financial harm.  

Milei Denies Endorsement, Defends Actions

Milei has rejected claims that he endorsed the LIBRA token and insisted that he only shared information about it. He maintains that the issue is a private financial matter, with no involvement from the Argentine government . 

While reports estimate that 44,000 investors were affected , Milei argues that most were bots. He states that only around 5,000 real investors were involved, with few from Argentina. According to him, the majority of traders were from China and the U.S. Despite the backlash, Milei says he acted in good faith and had no connection with the firm behind the token.  

Political Fallout and Market Impact Intensify 

The LIBRA controversy has triggered investigations from both the judiciary and regulatory bodies. Federal Judge María Servini has launched a legal probe and the anti-corruption office is conducting a separate inquiry. The scandal has also shaken Argentina’s financial markets which has caused the SP Merval stock index to drop by 5%.

KIP Protocol, a Web3 company linked to the project, has denied its involvement in the token’s launch. Despite Milei’s defense, the political fallout continues to grow. Opposition leaders are pushing for his removal and have accused him of failing to protect the investors. As investigations unfold, the incident has become a major test for Milei’s leadership and his administration’s transparency.