Argentina's President Javier Milei Charged with Fraud Over Solana Libra Memecoin Scandal

Politics in Argentina has taken a turn for the worse due to a scandal involving the $LIBRA token, leading to fraud charges against President Javier Milei. The token, which Milei briefly backed, plummeted by 95% in value, sparking a legal firestorm that has captured national attention.

In an unfolding drama, lawyers in Argentina have accused President Milei of orchestrating a fraudulent scheme around the $LIBRA token. Jonatan Baldiviezo, one of the plaintiffs, emphasized the president's central role in the alleged fraud, stating to the Associated Press, "Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential." This claim is supported by other notable figures, including former Central Bank head Claudio Lozano and additional professionals from legal and engineering backgrounds.

The Defense and Counter-Investigation

Milei has vehemently denied any foreknowledge or involvement in the token's operations, asserting his innocence. In response to the allegations, his administration has taken proactive steps by involving the Anti-Corruption Office (OA) to investigate not only the president but any government official possibly linked to the scandal. "Given the facts, President Javier Milei has decided to immediately involve the Anti-Corruption Office to determine whether there was improper conduct on the part of any member of the National Government, including the President himself," his office announced.

The situation was further complicated by Hayden Davis, an advisor on the Solana $LIBRA project, who accused Milei of causing the token's value crash by withdrawing his support, thus eroding investor confidence. Davis, however, also highlighted his role in protecting the remaining funds, suggesting a plan to reinvest up to $100 million back into the project by buying and burning the token, potentially to stabilize its value.

Onchain data contradict Davis's narrative, indicating that the token's value had already begun to fall before Milei's public distancing from the project. Reports had surfaced about internal team members cashing out significant amounts, which might have initiated the price drop.

As this narrative unfolds, the possibility of an impeachment looms, with Milei's political adversaries calling for such measures. The legal proceedings are expected to progress rapidly, with a judge potentially being assigned to the case as early as tomorrow, according to the Associated Press.