"Milei's LIBRA Endorsement: $4B Surge, $4.4B Wipeout, Fraud Charges Loom"

Argentine President Javier Milei is facing fraud charges following a dramatic crash in the value of the LIBRA token, which he had endorsed on his X account. The incident, which occurred on February 14, 2025, has drawn criticism from political opponents and led to formal legal action.

President Milei used his X account to promote the LIBRA token, describing it as a private project that would "incentivize the growth of the Argentine economy" by funding small businesses. The post included a link to the Viva La Libertad Project website. The market responded quickly to the presidential endorsement, with the token's value increasing by 3,223% within minutes, reaching a market cap of over $4 billion.

However, the surge proved short-lived. Five hours after the initial post, Milei deleted his endorsement, stating that he "had not been aware of the project's details" before sharing it with his 3.8 million followers. The token's value plummeted by 90% following the deletion, wiping out $4.4 billion in market value.

The project's developer, Hayden Davis of KIP Protocol, expressed frustration in a video posted on X. Davis claimed that Milei and his team had made prior commitments but "unexpectedly changed their position, withdrawing their support and deleting all previous posts on social media."

Blockchain analysts have identified several concerning patterns in the token's trading activity. According to Lookonchain, an unknown insider received compensation of $5 million in USD Coin (USDC). Speculation has linked this wallet to Dave Portnoy, who allegedly received LIBRA tokens for promotion. Further investigation by Bubblemaps revealed that 82% of the LIBRA token supply was controlled by a single cluster of wallets. The analysis firm also connected the creator's wallet to previous tokens like TRUST, KACY, VIBES, and HOOD, which they believe were pump-and-dump schemes.

On February 17, a group of lawyers filed formal fraud charges against President Milei. Attorney Jonatan Baldiviezo argued that the president's actions resembled a "rug pull" scam, where developers attract investors before abandoning a project. The legal complaint describes the operation as an "illicit association" involving "an indeterminate number of frauds." The lawyers maintain that Milei's involvement was