Javier Milei, Facing Accusations of Fraud Related to the Collapse of the $LIBRA

In the context of the increasingly volatile cryptocurrency market, the scandal related to the $LIBRA currency has caused a widespread impact when the President of Argentina, Javier Milei, was accused of criminal fraud. According to lawyers Jonatan Baldiviezo, Marcos Zelaya, María Eva Koutsovitis, and Claudio Lozano, Milei's actions are believed to have played a central role in a 'rug pull' - a classic fraudulent scenario causing heavy losses for millions of investors. The Launch Process and Sudden Collapse On the past Friday, Javier Milei posted an article on X (formerly Twitter) to promote the $LIBRA currency, attracting strong attention from the investment community. Just a few hours later, his post was deleted, leading to a selling frenzy on exchanges and causing the value of $LIBRA to plummet uncontrollably. Investors, monitoring the market through Dexscreener, witnessed their capital being “exposed” and quickly dissipated. Allegations and Legal Responses Lawyers assert that Milei's actions have violated Argentina's Public Ethics Law. "In this illegal connection, the crime of fraud has been committed, in which the president's actions played an essential role," said Jonatan Baldiviezo to The Associated Press. According to the indictment, Milei abused his position and political influence to inflate the value of assets, only to suddenly withdraw, leaving investors unexpectedly suffering heavy losses. However, the Office of the President quickly issued a statement denying any wrongdoing. According to the announcement, Milei did not directly participate in the creation of $LIBRA; his post was only intended to support startup projects, and the deletion of the tweet was done to prevent excessive speculation. Response from Javier Milei and Related Parties On platform X, Javier Milei said: "I don't know the details of this project, and after being informed, I decided not to continue promoting it ( that's why I deleted the tweet)." He also accuses his political rival of exploiting the scandal to undermine his credibility. In addition, online documents and records show that before the launch of $LIBRA, Javier Milei and some government officials had meetings with representatives of the KIP Protocol - the team behind the project. This further raises questions about his involvement in the event. Currently, the Anti-Corruption Office, a unit under the Judicial branch, has initiated an internal investigation and committed to transferring all collected information to the judiciary system to verify whether any individuals or organizations related to the KIP Protocol project have violated the law or not. Reactions From KIP Protocol And Jupiter Exchange In a recent video release, KIP Protocol's CEO Hayden Davis strongly criticized Milei, stating: "Despite initial commitments, Milei and his team suddenly changed their views, retreated, and deleted all previous posts on social media." According to Davis, Milei's sudden decision shattered investors' confidence, contributing to the collapse of $LIBRA. Not only that, the Jupiter Exchange cryptocurrency exchange also confirmed that some members of their team had prior knowledge of the launch of $LIBRA – information conveyed by Kelsier Ventures about two weeks ago. Although the currency had reached a value of 1.5 billion dollars before receiving the “Verified” badge on the platform, Jupiter Exchange asserts that they take seriously all allegations of insider trading. At the same time, they also stated that dozens of counterfeit token versions appeared immediately after the launch of $LIBRA, causing confusion for traders. The Current Reserve Situation and Future Prospects Despite the collapse of the $LIBRA value, CEO Hayden Davis still controls $100 million from the project's reserve fund. He said he would reinvest and burn all repurchased tokens to restore trust and ensure transparency. "Unless there is another feasible plan, I intend to implement this plan within the next 48 hours," Davis asserted, while denying all allegations of fraud, squarely blaming Milei's sudden decision." Consequences and Lessons for the Market While legal investigations are ongoing, investors are facing losses of millions of dollars, causing both the cryptocurrency market and the political circles in Argentina to face a wave of criticism. The $LIBRA scandal not only marks one of the biggest fraud cases in this field but also raises serious questions about the responsibility and transparency of leaders when intervening in the financial market. This incident promises to be a big lesson, emphasizing the importance of protecting investors from acts of political exploitation and highlighting the need for a transparent, fair market management system in the digital age. DYOR! #Write2Earn #MileiMemeCoinControversy $BTC {spot}(BTCUSDT)