Javier Milei's Authentication of $LIBRA: What Went Wrong?

Argentine President Javier Milei is facing serious allegations of fraud related to the promotion of the LIBRA token, a cryptocurrency that collapsed just hours after its launch, according to AP News. The LIBRA token code, created by KIP Protocol and Hayden Davis, is available through a link leading users to vivalalibertadproject(.)com, a website named after Milei's distinctive slogan. Legal experts assert that the verification of Milei plays a crucial role in what they describe as a classic "bait and switch" scheme. Legal action and accusation Jonatan Baldiviezo, the lawyer representing the plaintiff, accuses Milei of participating in an "unlawful alliance" to deceive investors. The lawsuit, endorsed by many legal and financial experts, argues that the president's actions are necessary to deceive the public. The case is currently being reviewed by the criminal justice system of Argentina, with the expectation of appointing a judge or transferring the case to a prosecutor for further investigation. What happened to LIBRA? Token LIBRA, developed on the Solana blockchain, has witnessed a surge in value after Milei publicly confirmed on X (previously Twitter). This token had reached a market capitalization of $4.56 billion on February 14th. However, within just 11 hours, its value plummeted by over 94%, down to $257 million. According to Lookonchain, at least eight wallets related to the LIBRA group stole $107 million before collapsing. They pocketed 57.6 million USD Coin and 249,671 Solana worth $49.7 million. Those involved in the scheme are accused of withdrawing cash and making hefty profits before the public realized what was happening. Milei's reaction: Denial and counterattack After deleting his advertising post, Milei declared that he did not know the details of the project and was not directly involved. He then accused his political opponents of taking advantage of the situation to damage his reputation. "To the filthy rats of the political class who want to take advantage of this situation, I want to say that every day they affirm how mean politicians are," Milei wrote on X and later deleted. Since then, his government has requested the National Anti-Corruption Office to investigate all government members, including Milei himself. The Presidential Office declares that the Anti-Corruption Office, acting under the branch of law, will take immediate action. The office also confirms that Milei and his team recently met with representatives of the KIP Protocol at the presidential office. "All information collected during the investigation will be transferred to the judicial authorities to determine whether any company or individual related to the KIP Protocol project has committed any crimes," the Milei government said in a statement on Saturday. Blockchain data confirms internal operations Chainalysis shows that internal wallets started selling tokens just three hours after LIBRA was launched on decentralized exchanges Bubblemaps, a blockchain analysis company, warned that 82% of LIBRA's supply had been unlocked and could be sold immediately from the start—a warning sign immediately. Further analysis shows that the LIBRA project is related to another controversial token, MELANIA. The wallet has earned $2.4 million from MELANIA and is said to have earned $6 million from LIBRA before its collapse. Risk of being accused? The scandal has caused political turmoil in Argentina. Opposition legislator Leandro Santoro has called for Milei's impeachment, claiming that the debate over LIBRA has brought shame to the country on an international scale. Meanwhile, Argentina's financial technology department acknowledges that the current situation is akin to a textbook tug of war, adding pressure to the Milei government.