Argentine President Javier Milei is now the target of a Federal Bureau of Investigation (FBI) probe regarding his involvement with the ill-fated cryptocurrency project Libra. According to local media, the FBI is investigating Milei and other key actors who facilitated the launch of Libra, a project that was originally advertised as a funding instrument for Argentine companies but ultimately affected over 44,000 people.
Background of the Investigation and Complaint Details
Attorney Mariano Moyano Rodríguez filed a complaint on behalf of more than 2,500 victims, urging the bureau to examine Milei's role. The complaint highlights that Milei used his social media accounts to promote Libra-related information, and it notes that this is not the first time he has supported crypto companies that have allegedly defrauded their customers. Moreover, the complaint warns that one of the project's entities, Kelsen Ventures, is not registered with the U.S. Securities and Exchange Commission (SEC) and lacks basic compliance procedures, including Know Your Customer (KYC) and Anti-Money Laundering (AML) measures, potentially harming U.S. investors.
Libra's Creators and Milei's Response
Libra was allegedly created by three parties: Argentine entrepreneurs Mauricio Novelli and Manuel Terrones Godoy (linked to Tech Forum Argentina), Kip Protocol, and Kelsen Ventures represented by Hayden Mark Davis. In a television interview, Milei distanced himself from the project, claiming he merely shared a post rather than endorsing it. He compared investing in Libra to gambling, stating, "They knew very well the risk they were taking. If you go to the casino and lose money, it’s your problem." In addition to the FBI probe, Milei's administration is also being investigated in Argentina for promoting Libra as an entrepreneurial funding tool.
The FBI investigation marks an escalation from a domestic controversy to a cross-border legal challenge, potentially impacting Milei's political standing and Argentina's international relations.