Argentina's President Javier Milei is under investigation for fraud after endorsing the cryptocurrency $LIBRA, which surged and then crashed, causing significant investor losses.

A major political and financial scandal is unfolding in Argentina as President Javier Milei is accused of fraud linked to the cryptocurrency $LIBRA. On Monday, a federal judge initiated an investigation into Milei’s involvement in promoting the digital asset.

The controversy began when Milei used his social media platform to endorse $LIBRA, presenting it as a tool to stimulate economic growth and support small businesses. Within hours of his endorsement, the cryptocurrency's value skyrocketed to a market capitalization of $4 billion, only to crash soon after, leaving investors with significant losses.

Critics have labeled the incident a potential "rug pull" scam—a scheme where developers attract investments, artificially inflate an asset’s value, and then withdraw their funds, causing a sudden market collapse.

Milei, a self-proclaimed "anarcho-capitalist," swiftly distanced himself from the scandal, asserting he had no financial ties to the cryptocurrency’s creators and was unaware of its full details. However, lawyers and human rights organizations have filed complaints, claiming that Milei's actions played a significant role in the alleged fraud.

The federal prosecutor’s office is also investigating whether Milei's involvement breached his official duties or constituted fraudulent behavior. The investigation continues as Argentina grapples with the growing political and financial fallout from this incident.

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