$LIBRA scandal: US law firm gearing up for criminal class action lawsuit in response to situation in Buenos Aires

A recent development sees the initiation of a fraud investigation led by Timothy J. Treanor, a former federal prosecutor from New York. This investigation is in response to the $LIBRA cryptocurrency scandal involving the Argentine President, Javier Milei. The primary objective is to bring forth a new class action lawsuit within the United States legal system.

The investigation conducted by Treanor’s law firm focuses on extensive claims of fraud, market manipulation, and potential racketeering violations surrounding the promotion and sale of the $LIBRA memecoin that took place on February 14, 2025. Of note is President Milei’s involvement in promoting the coin on social media platform X, a mere three minutes following its launch.

This impending lawsuit wouldn’t be the first legal action taken against Milei within the U.S. jurisdiction. A civil lawsuit was previously filed against him by the Burwick Law firm. However, in this instance, Treanor’s approach deviates as it emphasizes a criminal complaint against Milei stemming from his implicated role in the fraudulent activities surrounding $LIBRA.

The $LIBRA scam led to a substantial financial loss amounting to approximately US$280 million incurred by over 75,000 retail investors. A clear timeline for the lawsuit filing has not yet been established, although proceedings are expected to be brought to the New York federal court.

A key objective of the investigation is to determine whether investors were misled through false representations and manipulative trading practices, ultimately resulting in the financial losses they suffered. Treanor expressed their commitment to conducting a thorough examination of the $LIBRA coin developers and other involved parties to ascertain if their actions contravene any laws and have unfairly harmed individuals who placed their trust in the project’s integrity.

Moreover, Treanor’s firm collaborates closely with attorney Gregorio Dalbón, recognized in Argentina for representing former President Cristina Kirchner. Dalbón articulated the intention to approach the criminal facets of the case within the U.S. to underscore President Milei’s potential involvement in criminal activities beyond mere financial harm.

In response to these developments, the EFE news agency reported that Milei may have violated the Foreign Extortion Prevention Act by demanding or receiving bribes from U.S. entities. This statute deems it a federal crime for foreign government officials to engage in such acts with American counterparts.

Simultaneously, Milei faces legal scrutiny in both Argentina and Spain in connection to the crypto scam. Opposition parties in Congress are due to address initiatives requesting the establishment of a special commission to investigate the case and mandate public officials to account for their involvement.