$LIBRA recommendation by Javier Milei

The **recommendation of $LIBRA by Javier Milei**, journalistically called **Criptogate**, **Cryptogate** or **Libragate**, is an ongoing political scandal that began on Friday, February 14, 2025 at 19:01 UTC-3 Argentine time, when the president of Argentina, Javier Milei, recommended through a tweet a cryptocurrency project called $LIBRA.

The case had wide international repercussions because the value of the cryptocurrency grew significantly and rapidly after the recommendation, and then fell sharply in the span of a few hours. It left extraordinary profits for the founders, who took the opportunity to get rid of the tokens when their price was high, and massive losses for those who invested. The nine founding accounts of the cryptocurrency earned 87 million dollars obtained from fifty thousand people who invested in the cryptocurrency and who saw its value disappear in an operation with scam characteristics.

## Overview
In 2021, then-national deputy Javier Milei had recommended a cryptocurrency platform called CoinX, which promised high returns of up to 8% per month in dollars through automated trading algorithms. However, CoinX was reported for fraud. A year later, the National Securities Commission banned CoinX's financial operation for not having authorization to offer investments and compared it to a Ponzi scheme. Thousands of investors were affected by CoinX and suffered million-dollar losses. In response to the twenty-three raids on offices and homes carried out by the Argentine Federal Police in Buenos Aires, Milei responded: "I just gave my opinion."

In 2022, Milei promoted the NFT gaming project Vulcano Game, describing it as “very interesting.” However, the company's token, $VULC, dropped to $0 weeks after Milei's announcement. More recently, the president of Argentina, Javier Milei, is embroiled in a major controversy related to the Libra token, which allegedly defrauded investors of between $100 and $110 million. By 2023, warnings had already been issued about Milei's fraudulent activities, but they were ignored until he became president.
## Impact
### People affected
The number of people affected is around 44,000. 
### Beneficiaries
The company behind the token is KIP NETWORK INC, registered in Panama. The project email account was Gmail. 

The CEO of the company KIP NETWORK INC is Julian Peh, a Singaporean citizen who had met Milei at the Libertador Hotel in October 2024. The person who introduced them was Mauricio Novelli, a young trader who has known Milei since at least 2021. 70% of the total tokens were in the hands of their creators when the usual figure is 10% to 15%. A few accounts had profits estimated between 70 million and 100 million US dollars in a few hours. It was also known that there were bots buying, which according to crypto market specialists indicates that there were people who had the information that it was going to leave and they prepared.
## Political impact
The **impeachment** process in Argentina is outlined in the National Constitution. To begin it, it is necessary for the Chamber of Deputies to formulate a formal accusation against the president, which must be approved by a special majority. Once approved, the process goes to the Senate, which acts as a court and has the power to remove the president if his guilt in the charges is proven.

The opposition block of deputies from Unión por la Patria (UxP) has been one of the main promoters of the impeachment initiative for this situation. Through their social networks, they expressed that “Milei's participation in a crypto scam crime is extremely serious. "It is an unprecedented scandal." Cristina Fernández de Kirchner, former president of Argentina, spoke out on the matter, describing the president as "the hook of a digital scam" and questioning his actions in promoting a cryptocurrency of dubious origin from his official account. The Left Front (FIT) has requested Milei's immediate appearance in the Chamber of Deputies to provide "verbal reports" on the promotion of what they consider a "million-dollar scam" spread from their social networks.

The **Frente de Izquierda** political party (FIT) has requested Milei's immediate appearance in the Chamber of Deputies to provide "verbal reports" on the promotion of what they consider a "million-dollar scam" spread from their social networks. The Civic Coalition, represented by its president Maximiliano Ferraro, has distanced itself from the impeachment proposal. Ferraro stated that, although what happened is serious and could constitute crimes such as money laundering, fraud or fraud, impeachment "is not the way out." Instead, he advocates for ensuring justice is served and has made himself available to collaborate in relevant investigations.

The PRO has also expressed its concern about the economic impact and credibility of the country after this incident. However, they reject the use of impeachment and describe it as "opportunistic".

## Possible legal consequences
In the first 48 hours, 112 criminal complaints were filed in the Argentine Federal Justice. The accusations against Javier Milei could fall under various crimes contemplated in Argentine legislation, such as fraud, illicit association and failure to comply with the duties of a public official. 

On the other hand, international law firms, such as **Burwick Law**, are organizing class action lawsuits on behalf of foreign investors who suffered significant losses following the collapse of **$LIBRA**. These firms seek to bring together affected parties from various jurisdictions to present cases in international courts, arguing that Milei's promotion of cryptocurrency constituted a deceptive practice that led to harmful investments.

On February 17, 2025, an Argentine law firm operating in the United States and advising victims of the **$LIBRA** cryptocurrency scam, reported Milei, among other parties, to the United States Department of Justice and the FBI. There are ongoing discussions about possible legal action against Milei in the United States, with accusations of fraud in the air.

The nature of cryptocurrency contracts complicates legal procedures, as they Investors may have agreed to terms that exonerate promoters from liability. On the 28th of that month, Hayden Davis, his family and Milei himself were denounced in the Spanish National Court.

## References