Lawyers representing a "class action" lawsuit in the United States allege that a social media post by Argentine President Javier Milei on February 14, 2025, prompted "tens of thousands" of individuals to "deceivedly" purchase the $LIBRA memecoin. This claim, made by the legal team, underscores the significant financial fallout for investors following the cryptocurrency's rapid collapse.IdontthinkthisisanissueherebecausewearejustparsingthestringandreturningtheJSONobject.
On February 14, President Milei posted about the $LIBRA token on X (formerly Twitter), presenting it as a private project intended to foster economic growth in Argentina. This high-profile endorsement triggered a massive surge in the memecoin's value, briefly propelling its market capitalization to approximately $4.5 billion. However, within hours, $LIBRA's value plummeted by over 90%, leaving an estimated 75,000 retail investors with collective losses totaling around $280 million.
Critics and legal experts have widely described the incident as a "rug pull," where initial accounts allegedly withdrew substantial funds, reportedly netting around $87 million. Following the swift collapse, President Milei deleted his original post and later stated, "I was not aware of the details of the project and after having become aware of it I decided not to continue spreading the word." He further asserted that investors in the volatile crypto market assume risks akin to a "casino."
In the United States, law firms such as Burwick Law and Treanor Law Firm are actively preparing and pursuing class-action lawsuits against various parties involved, including the creators of $LIBRA and potentially President Milei himself. These legal efforts aim to recover funds for the victims and address allegations of fraud, market manipulation, and racketeering. Adding to the legal pressure, a US judge recently ordered the freezing of over $57 million in USDC linked to the $LIBRA proceeds.
The scandal, widely dubbed "Cryptogate" or "Libragate," has triggered significant legal and political repercussions in Argentina, including over 100 criminal complaints against Milei, calls for his impeachment, and parliamentary investigations. While the Argentine Anti-Corruption Office initiated an inquiry, it later concluded that Milei's post was not an official government endorsement. This incident marks another instance where President Milei has been linked to problematic crypto ventures, following previous promotions of the CoinX platform and the $VULC token, both of which also faced issues or collapsed.