Javier Milei Crypto Rug Pull? Legal experts investigate the sudden collapse of $LIBRA

Argentina is embroiled in a fierce debate over cryptocurrency, with President Javier Milei at the center of the scandal. It all started when Milei posted information about LIBRA - a new cryptocurrency - on the X ( platform which was previously Twitter). Within hours, his support caused the price of LIBRA to skyrocket from 0.006 USD to nearly 5 USD. Many investors mistakenly believed that the project had government backing and rushed to buy in. However, the trust was short-lived as within six hours, the price of LIBRA plummeted to 0.84 USD, causing billions of dollars to evaporate and creating market panic. Immediate Legal Action After the collapse, lawyers Jonatan Baldiviezo and Marcos Zelaya officially filed charges of fraud against Milei. They argue that the President's promotion of LIBRA has caused serious misunderstandings for investors, similar to "rug pulls" - a common scam in the crypto world, where developers promote a coin before suddenly withdrawing, leaving investors with significant losses. At the same time, Burwick Law firm has also urged affected investors to contact them for legal support.

Reactions of the President and the Spokesperson Group Facing a wave of criticism, Milei quickly deleted his post and denied any involvement in creating LIBRA. According to his spokesperson, the post was removed to stop the spread of uncontrolled rumors and speculation. However, many legal experts believe that even though the post has been deleted, the consequences have been created, and now the question of responsibility is being brought to light in the legal arena. Ghost Transaction Insider The situation becomes more complicated when Jupiter Exchange admits that some members of their team knew about the launch of LIBRA weeks before Milei's post was published. According to them, there were discussions in closed groups about a coin called 'Argentina Coin'. Although Jupiter Exchange denies insider trading allegations, this revelation has led the public to suspect that some individuals may have profited unfairly before the coin's price collapsed. Notably, Hayden Davis - CEO of Kelsier Ventures and also one of the strong supporters of LIBRA - blamed Milei for the collapse of this currency. He stated that the President's team promised to support the project but later turned away, shaking the confidence of investors. Davis asserted that he did not engage in any fraudulent activities and even claimed to still control 100 million USD from the LIBRA fund, with a reinvestment plan to repurchase and burn the currency in an attempt to restore its value. Investigation of the Anti-Corruption Office Before the wave of accusations and market instability, Argentina's Anti-Corruption Office launched an investigation to determine if any criminal activity had occurred. A special task force, including experts in cryptocurrencies, finance, and anti-money laundering, was established to comprehensively review the case. The government is committed to bringing the entire investigation results to court, amid increasingly complex lawsuits and investors losing confidence. Notable Meetings In addition to the events mentioned above, the scandal is also being scrutinized through President Milei's important meetings with key figures in the blockchain industry. According to information, in October 2024, he met with the CEOs of KIP Protocol - Mauricio Novelli and Julian Peh - to discuss a blockchain technology initiative. Furthermore, in January 2025, Milei also had a meeting with Hayden Davis. Although the government asserts that these meetings are not officially related to state activities, this information still raises questions in public opinion about transparency and the boundary between individuals and the state. Uncertain Future for Argentine Politics With a series of lawsuits and investigations ongoing, the political future of President Javier Milei is facing many uncertainties. If accused of fraud or insider trading, this leader may have difficulty in consolidating his position. In the context of waning investor and public trust, the LIBRA scandal is not only a valuable lesson on the risks of the crypto market, but also a warning about the close relationship between politics and financial technology in the digital age. As the investigation is still ongoing, the question is whether Javier Milei can restore public and investor confidence, or will this scandal become a turning point in his political career? Only time will tell. DYOR! #Write2Earn #Write&Earn $BTC {spot}( BTC USDT )