The ‘Milei Crypto Scam’ to Be Investigated by U.S. and Spanish Institutions
Argentine President Javier Milei. X/ @MatiAromi
February 26, 2025 Hour: 1:25 pm
The $LIBRA scandal is highlighting the risks associated with investing in cryptocurrencies.
The scandal surrounding $LIBRA, the “cryptocurrency” promoted by Argentine President Javier Milei, has triggered legal and financial investigations in multiple countries.
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In Spain, SUMAR party legislator Gerardo Pisarello filed a complaint with the National Court Prosecutor’s Office, requesting an investigation into the fraudulent operations and financial security risks linked to $LIBRA.
The complaint is based on the revelation that Hayden Davis, CEO of Kelsier Ventures and the main promoter of $LIBRA, resided for part of the year in Girona, Catalonia, which could justify the jurisdiction of Spanish authorities in this case.
Pisarello recalled that Milei promoted $LIBRA from his ‘X’ account, presenting it as a beneficial initiative for small and medium-sized Argentine enterprises. However, the manipulated information resulted in thousands of people being defrauded, while a select few managed to earn millions of dollars.
In Spain, the potential crimes involved in the scam promoted by Argentine President Milei include “market manipulation,” “aggravated fraud,” and “aggravated insider trading.”
Pisarello requested that Spanish authorities coordinate with the European Prosecutor’s Office to investigate the exact residence of the Davis family members and determine whether they participated from Spain in illegal financial manipulation or fraudulent scams.
In the U.S., the law firm Moyano & Asociados filed a complaint with the Department of Justice on behalf of 40 citizens defrauded by $LIBRA. New York-based Burwick Law, a firm specializing in cryptocurrency cases, will represent victims worldwide, including individuals from Africa and Asia.
Civil and criminal lawsuits could move forward, though this remains uncertain due to the deregulation of the crypto market under the Trump administration. Investigations are being conducted by the Department of Justice, the FBI, and the Securities and Exchange Commission (SEC).
In the U.S., agencies typically carry out an initial internal investigation before referring the case to the Prosecutor’s Office. In this context, Hayden Davis’s attorney, Yanina Nicoletti, suggested that her client would prefer to be tried in the U.S., where he could benefit from legal protections as a defendant.
“These individuals not only engage in scamming and stealing the savings of thousands of ordinary people, but they are also a threat to financial security and the integrity of the market they claim to defend,” Pisarello said.
“If Al Capone fell for tax evasion, it cannot be ruled out that these unscrupulous individuals, with Milei at the helm, will fall due to their boundless greed and immorality,” he added.
The $LIBRA scandal has had a significant impact on the cryptocurrency market, highlighting the risks associated with investing in these assets. The “rug pull” scheme involved wallets with insider information buying at extremely low prices, inflating the value of $LIBRA through Milei’s promotion, only to later sell off the crypto assets, causing massive losses for investors.
It is estimated that around 44,000 people lost approximately US$87 million following $LIBRA’s collapse, which is why Forbes labeled the Milei-backed fraud as “the largest cryptocurrency heist in history.”
teleSUR/ JF
Sources: Pagina 12 – EL Economista
