Argentinian President Javier Milei faces fraud charges related to his involvement in the $LIBRA token project, which recently experienced a dramatic collapse, losing 95% of its value.
Argentinian President Javier Milei faces fraud charges related to his involvement in the $LIBRA token project, which recently experienced a dramatic collapse, losing 95% of its value.
The lawsuit was initiated by a group of Argentinian lawyers and includes former Central Bank head Claudio Lozano among the plaintiffs.
The legal action has intensified following claims that Milei's withdrawal of support for the token contributed to its significant decline. Hayden Davis, an advisor to the project, asserted that this decision eroded investor confidence. "As the custodian—not the owner—of these funds, I do not feel comfortable transferring them to Milei's associates," Davis stated.
Despite these allegations, Milei maintains that he had no prior knowledge of the project’s issues. His administration announced plans to conduct an internal investigation into the token's collapse. "Given the facts, President Javier Milei has decided to immediately involve the Anti-Corruption Office (OA) to determine whether there was improper conduct," a translated statement from his office read.
The $LIBRA token's value plummeted following reports that insiders had cashed out approximately $107 million in trading fees and liquidity pool funds before the crash. Although Davis claims to control about $100 million, he plans to reinvest these funds into the project by buying and burning tokens.
As the legal proceedings unfold, a judge to oversee the case may be appointed as early as tomorrow. The situation has prompted some members of Milei's political opposition to call for an impeachment trial, further complicating Argentina’s already turbulent political landscape.
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