$LIBRA scandal: US law firm prepares criminal class action lawsuit

A New York-based law firm led by former federal prosecutor Timothy J. Treanor launched a new fraud investigation over the $LIBRA cryptocurrency scandal that involves Argentine President Javier Milei. The goal is to file a new class action lawsuit before the United States judiciary.

The investigation will cover “widespread allegations of fraud, market manipulation, and potential racketeering violations by those responsible for the promotion and sale of the $LIBRA memecoin on February 14, 2025,” said a press release from Treanor Law Firm published on April 1. This includes Milei, who posted on X promoting the coin three minutes after it was launched.This would be the second class action lawsuit filed against Milei in the United States.



The first one was a civil claim filed by the Burwick Law firm, while Treanor’s is a criminal complaint and instead focuses on Milei’s role in the scam.Over 75,000 retail investors lost around US$280 million as part of the $LIBRA scam. There is still no set date for the lawsuit to be filed, although it is expected to be presented at the New York federal court.

The goal of the investigation is to determine “whether retail investors were misled by false representations and manipulative trading and whether such misconduct was responsible for financial losses they suffered.”“We are committed to thoroughly examining the actions of the $LIBRA coin developers and associated parties to determine if their practices violate any laws and harmed those who trusted in the representations of the developers and supporters and the integrity of the market,” said Treanor in the press release.The law firm is working closely with attorney Gregorio Dalbón, renowned in Argentina for representing former president Cristina Kirchner.

“Our idea is to approach the criminal perspective in the United States and to make it clear that this didn’t just damage assets, but that also President Milei committed crimes,” Dalbón wrote on X after the investigation was launched.Ya es pública la información por lo que puedo asegurar la seriedad de TIMOTHY J. TREANOR con quien estamos en contacto confidencial.

La idea es abordar la cuestión criminal en EEUU y entender que no solo es un daño patrimonial sino que el Presidente Milei cometió delitos. pic.twitter.

com/9qpTCgCsyG— Gregorio Dalbon (@Gregoriodalbon) April 2, 2025According to the EFE news agency, Treanor contacted Dalbón stating thatMilei may have violated the Foreign Extortion Prevention Act, which makes it a federal crime for any foreign government official to demand or receive bribes from U.S. companies or individuals.

Milei has also been reported in Argentina and Spain for his role in the crypto scam. On Tuesday, Congress will address opposition initiatives to push the creation of a special commission to investigate the case and request public officials to give their explanations on the matter.You may also be interested in: Milei is already facing impeachment requests and lawsuits in $LIBRA crypto scandalLa entrada $LIBRA scandal: US law firm prepares criminal class action lawsuit se publicó primero en Buenos Aires Herald.

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