DOJ launches an investigation into Argentina’s President Javier Milei’s ties to the Libra cryptocurrency project, examining potential fraud and influence peddling.
U.S. Authorities Probe Allegations of Fraud in Libra Crypto Project
The U.S. Department of Justice (DOJ) has reportedly opened an investigation into President Javier Milei’s involvement in the promotion of the cryptocurrency Libra and the potential role of its founders in an alleged financial scheme. According to sources cited by Argentine media, the DOJ’s fraud section is leading the inquiry, which remains in its early stages.
DOJ Investigates Libra’s Collapse
The investigation centers on whether Milei’s public endorsement of Libra influenced investors and whether fraudulent activities were involved in its promotion. The DOJ is examining key figures linked to the project, including Kelsier Ventures’ Hayden Davis, KIP Protocol’s Julian Peh, and Argentine entrepreneurs Mauricio Novelli and Manuel Terrones Godoy.
The probe may extend to multiple U.S. agencies, including the Federal Bureau of Investigation (FBI), the Department of Homeland Security (DHS), and the Securities and Exchange Commission (SEC). These agencies are expected to assess potential financial misconduct involving U.S. entities and international investors.
Political and Legal Fallout
Libra, initially presented as a funding tool for Argentine businesses, gained traction after Milei promoted it on social media. However, the token’s value later collapsed, resulting in significant investor losses. Critics have accused Milei of using his political influence to boost the project, while supporters argue he merely shared information without direct involvement.
Argentine authorities are conducting a separate investigation into Milei’s relationship with Libra’s founders, exploring potential charges of influence peddling, abuse of power, and fraud. While Milei has denied any wrongdoing, he has ordered an internal review, maintaining that investors knowingly took risks by participating in the volatile crypto market.
Expanding the Inquiry
The DOJ’s involvement signals increased scrutiny of political figures engaged in cryptocurrency-related ventures. If substantial evidence emerges, the case could lead to legal action in both the U.S. and Argentina.
As the investigation unfolds, further details are expected to clarify the extent of Milei’s connection to the project. Investors and political analysts will be closely watching developments that could have broader implications for crypto regulation and political accountability.
For ongoing updates, follow official announcements from U.S. and Argentine authorities.
