Argentinean President Javier Mairi is currently facing criminal fraud charges against his meme coin $libra, which collapsed within hours by the pull of a classic rug. Lawyers Jonatan Baldiviezo, Marcos Zelaya, María Eva Koutsovitis and Claudio Lozano filed a lawsuit on Sunday, accusing Javier of playing a central role in “Ragpur”, misleading the public and causing significant economic losses.
Javier promoted $Libra via X (formerly Twitter) on Friday, and his post quickly caught the attention and sparked massive investments. But a few hours later, he deleted the post and sent the price of $libra to a free fall, and investors looking at the Dexscreener market saw their holdings have been wiped out.
According to the plaintiffs, Javier’s actions amounted to fraud and violations of Argentine’s public ethics law. “At this illegal association, a fraud crime has been committed, in which the president’s actions are essential.” The lawsuit accused Javier of using his position and influence to boost financial assets, and dumped it without warning, leaving unsuspecting investors in the dust.
The presidential office denied fraud in a statement on Saturday, with Javier not involved in creating $Libra, and his post was made in good faith to support entrepreneurial projects, but speculation claimed it was removed to prevent it.
Javier himself responded with X, “I wasn’t aware of the details of the project, so after getting the information I decided not to continue promoting it (so I deleted the tweet).” He said He also accused his political opponents of trying to misuse the controversy by the opposition to undermine him.
Despite his denials, documents and online records confirm that Javier and members of his administration met with representatives of the KIP Protocol, the team behind $Libra. The Anti-Corruption Bureau, which operates under the administrative department, has launched an internal investigation.
In a statement, the Presidential Office said “all information collected in the investigation will be handed over to the judiciary to determine whether a company or individual linked to the KIP Protocol Project has committed a crime.”
KIP Protocol, Jupiter Exchange, and Hayden Davis React
Hayden Davis, CEO of KIP Protocol, publicly denounced Javier Milei for the downfall of $Libra. In a video statement released Saturday, Hayden said: “Despite previous commitments, Javier and his team unexpectedly changed positions, retracted support, and deleted all previous posts on social media.”
Meanwhile, Crypto Exchange Jupiter Exchange confirmed that some of the team members had known about the $Libra launch before Javier’s tweet. In a statement, Jupiter admitted: “A few members of the Jupiter team knew at one point that there was a token project related to Argentine President Javier Mirei. I learned this two weeks ago directly from Kelsier Ventures.”
However, Jupiter refused to trade insiders, saying that the coin had already reached a market capitalization of $1.5 billion before receiving the “confirmed” tag on the platform. “Libra didn’t get the ‘confirmed’ icon in the default token search until about an hour after its launch,” they said.
Despite the denial, the exchange confirmed that dozens of con artists’ tokens flooded the market shortly after $Libra’s launch, making it easier for traders to accidentally buy the wrong token I did. “We take insider trading claims very seriously. If you have evidence that a Jupiter employee is leaking or sniping information, please contact us directly. Private information If a team member is found acting on the basis of the company, it can take prompt and decisive action.”
Libra Funds $100 million, still under Hayden’s control
Despite a massive price collapse, Hayden Hayden still manages the $100 million Libra Treasury fund. He announced that he would reinvest and burn all the repurchase tokens, claiming he remains committed to transparency.
“Unless we are presented with a more viable alternative, we intend to begin the process of implementing this plan within the next 48 hours,” Hayden said. He also denied any involvement in the fraud and placed Javier directly in blame for the devastating crash of the coin.
Hayden added: “Javier’s companions secured his public support at the launch and ensured that his continued support was guaranteed through the launch.” He argued that Javier’s sudden reversal shattered investors’ trust and led to a price collapse.
The legal battle is escalating, but investors are losing millions. The Argentine government faces surveillance coverage and Javier Mairei is currently at the heart of the biggest crypto scandal in history.
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