Legal Action for LIBRA’s Market Chaos
A group of lawyers from Argentina has publicly asked the U.S. Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) to look into who caused the LIBRA token to crash. The legal document, which was sent on February 17, also asks the authorities to look into what part President Javier Milei played in the scandal.
After a rough financial period where the LIBRA token’s market value skyrocketed to $4.56 billion before falling to just $257 million in just a few hours, this is what happened. Milei made a now-deleted post on social media about the project as a way to help small businesses and startups in Argentina, which caused the spike.
Effects on politics and calls for impeachment
Opposition lawmakers are increasing their pressure on Milei, with some even suggesting his impeachment. The Civic Coalition ARI filed a separate criminal complaint. It accuses the president of allowing fraud to happen and says that the government cannot impartially oversee its own probe.
But the government has tried to avoid being linked to the scandal by saying Milei was tricked by LIBRA’s leaders and didn’t know how the organization made money.
Reactions around the world and responses from businesses
The controversy has gotten interest from people all over the world, including politicians and crypto experts. President Donald Trump made fun of the mess on social media, but Hayden Davis, the founder of LIBRA, said that the failure of the coin was not a scam but just a bad turn of events.
As the case gets more attention from the courts, it’s likely to have big effects on both the coin market and Argentina’s politics. The investigations into LIBRA’s fall could set a standard for how financial crimes involving digital assets are dealt with around the world.
