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Coinbase, Libra, and Milei: Crypto Faces a Legal Tsunami on All Fronts

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From Wall Street to Buenos Aires, crypto is once again under legal fire. A wave of high-profile lawsuits and class actions is piling up against major players across the space — targeting Coinbase, Meta’s defunct Libra project, and even Argentine President Javier Milei over alleged crypto misconduct.

The legal onslaught signals a broader shift: the courts are becoming the battleground for crypto legitimacy — not just the markets.


The Cases Making Headlines

1. Coinbase Faces New Class Action

Coinbase is being sued (again), this time over allegations tied to insider trading and misleading investors. The plaintiffs claim Coinbase:

  • Listed assets it knew might be securities
  • Failed to disclose critical regulatory risks
  • Created a false sense of legal clarity during IPO hype

The case comes just as Coinbase tries to reposition itself as a regulatory-compliant crypto hub in a post-ETF, pro-tokenization era.

2. Libra Isn’t Dead — Legally

Though Meta (formerly Facebook) killed its Libra/Diem stablecoin ambitions in 2022, it can’t bury the legal consequences.

A fresh class action argues that Libra:

  • Was misleadingly marketed to retail investors
  • Violated securities laws by failing to register offerings
  • Misrepresented its governance model and reserve backing

This could reopen scrutiny of Big Tech’s involvement in stablecoins, just as new regulatory frameworks (like Hong Kong’s and MiCA) take shape.

3. Argentina’s Milei Dragged into Crypto Scheme Lawsuit

Perhaps most unusual: Argentine President Javier Milei is named in a class action linked to Coinx, a defunct investment platform that allegedly operated as a crypto pyramid scheme.

Milei, a vocal crypto supporter, once promoted Coinx on social media before its collapse. Plaintiffs argue he lent the company credibility that fueled public losses.

His legal team has dismissed the case as politically motivated — but it underscores the reputational risk of political crypto endorsements in Latin America and beyond.


Why This Moment Matters

  • Judicial momentum is building: From retail losses to securities law to fraud, courts are emerging as the de facto regulators in jurisdictions where legislation lags.
  • Crypto-native and mainstream players alike are exposed: Whether you’re a startup, an exchange, or a former tech giant, legacy liability is real.
  • Global jurisdictions are no longer siloed: U.S., EU, and LATAM legal systems are starting to reference one another — a hint of emerging cross-border crypto jurisprudence.

The Bottom Line

Crypto has always lived in legal gray zones. Now, that gray is being hashed out — not just in hearings or agency guidelines, but in classrooms, courthouses, and class-action filings.

From Silicon Valley to South America, the courtroom may be the next frontier of crypto regulation — whether the industry is ready or not.

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