$LIBRA scandal: Multi-million-dollar civil lawsuit in US 'being prepared'

The problems facing President Javier Milei’s government over the so-called ‘Cryptogate’ scandal are going global.

Dozens of legal complaints have been filed against Milei and the other parties involved, both in Argentina and the United States. Meanwhile, opposition lawmakers have announced they will pursue impeachment proceedings over the alleged “crypto-fraud.”

According to reporting by the La Nación newspaper, in addition to a criminal denunciation received by the US Justice Department and the FBI, legal action is now being prepared by a New York law firm.

Burwick Law, which specialises in providing legal protection to digital consumers, is reportedly preparing a class-action lawsuit involving more than 200 clients from different countries who lost money in last week’s controversial launch of the ‘$LIBRA’ cryptocurrency.

President Milei, who posted about the so-called ‘memecoin’ before deleting his post hours later, could find himself named in the suit, which groups together individuals who are seeking to recover their money and bring those responsible to justice.

“We are currently investigating and analysing what happened to identify possible legal options for our clients,” Max Burwick, the firm's managing partner, told La Nación. “‘Our goal is to vigorously defend our clients, exploring all available civil remedies, including litigation if necessary.”

The US firm said it is “too early” to define its legal strategy and is exploring what jurisdiction would be best to file the case.

Burwick did not specify who could be named in the suit, but Milei and several of the individuals behind $LIBRA and its launch would likely be named, such as US entrepreneur Hayden Mark Davis, Argentine citizen Maurici Novelli and Maurio Terrones Godoy and Singaporean entrepreneur Julian Peh.

The firm said it currently represents victims of alleged fraud from Argentina, the United States and other countries in the hemisphere, as well as Europe, Asia and Africa.