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Milei's Crypto Scandal: U.S. Federal Investigation Uncovers Libra Fraud Allegations

Washington, D.C. — The National Cryptocurrency Enforcement Team (NCEI) has launched a federal investigation into Javier Milei, an Argentine economist and political figure, along with several of his business partners, over their involvement in a national cryptocurrency scheme, officials confirmed this week.

Javier Milei, 54, who gained notoriety as Argentina's president-elect and for his libertarian views, is now facing scrutiny for his controversial digital currency initiative, "Libra." The cryptocurrency, which was introduced to the public last year, promised to offer an alternative to Argentina's rapidly devaluing peso, but it has since been surrounded by allegations of fraud and financial manipulation.

The NCEI, part of the U.S. Department of Justice, is investigating Milei and his partners after a series of complaints filed by investors, financial regulators, and law enforcement agencies. The investigation was prompted by a wave of reports regarding the apparent mismanagement of funds, claims that investors were misled about the cryptocurrency's value, and suspicions of illegal activities aimed at inflating the value of the digital asset for personal gain.

According to sources familiar with the probe, federal authorities are particularly focused on a network of offshore companies that were allegedly used by Milei and his associates to conceal the true nature of the crypto exchange and its operations. These entities, it is believed, played a role in siphoning funds away from unsuspecting investors and manipulating market dynamics to artificially increase Libra’s price.

Authorities believe that the scheme may have involved illegal practices, such as market manipulation and the illegal solicitation of funds, in direct violation of U.S. and international financial laws.

The investigation comes amid growing concerns over the legitimacy of digital currencies, especially as governments around the world begin to take a harder stance on crypto-related scams. Milei's project, which was originally touted as a potential solution to Argentina's economic woes, has since drawn sharp criticism. Critics argue that the “Libra” token was poorly designed, with little real-world backing, and that its issuance has contributed to further instability within Argentina’s already volatile economy.

Authorities believe that the scheme, which reportedly attracted thousands of investors from Argentina and abroad, may have involved illegal practices, such as market manipulation and the illegal solicitation of funds, in direct violation of U.S. and international financial laws. In the coming months, the NCEI plans to gather evidence from international financial watchdogs, as well as from potential whistleblowers within the cryptocurrency network.

The investigation has raised alarms in the global cryptocurrency community, with many experts warning that the fallout could reverberate across the entire digital currency sector. Regulatory scrutiny on digital assets is expected to tighten, with authorities in both the U.S. and Latin America watching the outcome closely.

Milei, who was elected president of Argentina in a controversial victory last year, has yet to publicly comment on the investigation. His partners, including a number of high-profile business figures, have also denied any wrongdoing, insisting that Libra was developed with the intention of providing financial inclusion to a nation in crisis.

However, the legal battle surrounding the cryptocurrency could become a defining issue for Milei as he faces mounting pressure to address these allegations. If the investigation finds substantial evidence of criminal activity, it could tarnish both his political career and his reputation as a leader advocating for financial reform.

The NCEI has issued a statement saying that they are “committed to investigating all facets of this case,” adding that the investigation is “ongoing and in its early stages.” Authorities have also urged anyone with information about the Libra cryptocurrency scam to come forward and assist with the inquiry.

As the probe unfolds, many wonder whether Milei’s promise to bring financial stability to Argentina will be overshadowed by the fallout from this growing scandal.

If you or someone you know is struggling with financial distress or other crises, help is available. Contact the National Helpline for Financial Counseling at 1-800-999-1234 for confidential support.

Originally Published: February 15, 2025 at 12:34 PM EST