DOJ to Investigate President Javier Milei Over LIBRA Token Fraud Ties

The U.S. Department of Justice (DOJ) has reportedly begun efforts to investigate President Javier Milei over his promotion of the LIBRA token, along with the alleged involvement of the project’s founders and two Argentine entrepreneurs. The inquiry seeks to determine their roles in the scheme and assess potential fraudulent activity.

According to sources cited by Argentine newspaper La Nación, the DOJ initiated its investigation one week after the collapse of the LIBRA memecoin. Reports indicate that the probe is still in its early stages, with authorities beginning to gather preliminary information.

The Fraud Section of the DOJ’s Criminal Division, which focuses on complex financial crimes and corporate corruption cases involving U.S. entities, has taken the lead in collecting and analyzing initial data as part of the investigation.

The DOJ launched its investigation after receiving at least one criminal operations report regarding the LIBRA meme coin, which is alleged to be a massive scam valued between $87 million and $107 million. The scheme reportedly impacted thousands of investors in Argentina, prompting further scrutiny from authorities.

The report also noted the involvement of President Milei in the launch and subsequent collapse of LIBRA, noting that he made two posts on X promoting the project. Additionally, it identified Hayden Mark Davis of the United States, Julian Peh of Singapore, and Argentine entrepreneurs Mauricio Novelli and Manuel Terrones Godoy as key figures linked to the scheme.

Moreover, the investigation could expand to involve multiple U.S. government agencies, including the Department of Homeland Security (DHS), the Securities and Exchange Commission (SEC), and the Federal Bureau of Investigation (FBI), which is reportedly already looking into the matter. The probe has also recorded ‘repentants’ and defendants who have chosen to plead guilty.

Argentine authorities have also launched an investigation into President Milei and his ties to the LIBRA token founders, probing potential charges of abuse of authority, influence peddling, and fraud. The inquiry follows reports that Davis allegedly communicated with Karina Milei, the president’s sister, and claimed that financial contributions gave him leverage over President Milei’s decisions.

Following the collapse, President Milei initiated an internal investigation while distancing himself from the project. He denied any involvement in its operations, stating that he did not endorse the token but merely shared information about it. Milei also downplayed investor losses, asserting that most participants understood the risks of the trade, referring to them as “volatility operators.”

On February 14, President Milei used X to promote the Solana-based LIBRA token, sharing both a website and contract address in a now-deleted post. He described LIBRA as a “private project” aimed at stimulating Argentina’s economic growth.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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