Argentine President Javier Milei grapples with mounting legal pressure in the United States over his alleged role in promoting the $LIBRA cryptocurrency scam, as victims pursue a class-action lawsuit in New York federal court seeking financial compensation for losses exceeding $280mn.

Milei faced widespread criticism, including impeachment calls, after promoting the cryptocurrency that crashed hours after his endorsement. The libertarian president posted a message on X on February 14, endorsing a novel "private project" called $LIBRA, which purported to stimulate Argentina's economy by financing small businesses. The token's value surged to nearly $5,000 per coin, reaching a market capitalisation of $4.6bn – comparable to a major Argentine bank – before plummeting to under $1 within hours.

The filing before Judge Jennifer Rochon requests an extension of asset freezes on $57mn held by American businessman Hayden Davis and his associates at Kelsier Ventures, whom plaintiffs identify as the cryptocurrency's creators. According to the Burwick Law firm's brief, Davis "intentionally obtained" Milei's "highly misleading" promotional statement to give $LIBRA "a false appearance of legitimacy and government affiliation," as quoted by EL PAÍS.

The document states that “tens of thousands of reasonable consumers were misled” and that the “investment project” Milei promoted in his February 14 post related to the memecoin was false.

Evidence shows Milei met with Davis at Casa Rosada on January 30, two weeks before the promotional post. Coinciding with that meeting and subsequent promotion, Davis made significant transfers to various platforms and virtual wallets.

While the New York lawsuit avoids directly targeting Milei to expedite proceedings, it highlights his central role and leaves options for future claims. Meanwhile, Argentina's domestic investigation has stalled after Milei terminated the special investigative unit without releasing findings, while congressional opposition efforts face government-aligned legislative obstruction.