President Milei Accused of Fraud Amid $LIBRA Cryptocurrency Scandal
Argentine President Javier Milei faces fraud allegations after promoting the cryptocurrency $LIBRA, which collapsed, leading to significant investor losses.
Outlines:
- President Milei’s Promotion of $LIBRA Cryptocurrency
- Legal and Political Repercussions
- Government’s Response and Ongoing Investigations
In a rapidly unfolding controversy, Argentine President Javier Milei is confronting serious fraud allegations following his promotion of the cryptocurrency $LIBRA. The situation has escalated to the point where legal actions have been initiated, and calls for his impeachment are intensifying.
Promotion and Subsequent Collapse of $LIBRA
On Friday, President Milei utilized his social media platform to endorse $LIBRA, a cryptocurrency developed by KIP Protocol and entrepreneur Hayden Mark Davis. He portrayed it as a financial tool designed to stimulate economic growth by supporting small businesses and startups. This endorsement led to a meteoric rise in $LIBRA’s value, surging from virtually nothing to approximately $5 per token. However, within hours, Milei deleted his promotional post, triggering a catastrophic collapse in the cryptocurrency’s value and resulting in substantial financial losses for numerous investors.
Legal Actions and Allegations
In response to the financial turmoil, a group of Argentine lawyers, including Jonatan Baldiviezo, Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano, have filed criminal fraud charges against President Milei. They accuse him of engaging in an “illicit association to commit fraud,” asserting that his actions constitute a classic “rug pull” scheme—a fraudulent practice in the cryptocurrency world where developers abandon a project after attracting significant investment, rendering the tokens worthless.
Government’s Response
The President’s office has issued a statement distancing Milei from the development of $LIBRA, claiming he was unaware of the project’s specifics. He removed his social media post to prevent further speculation. Despite this, the administration has acknowledged that President Milei and his team had met with representatives from the KIP Protocol at the presidential office. In light of the allegations, the government has pledged full cooperation with judicial investigations and has tasked Argentina’s Anti-Corruption Office with conducting a thorough inquiry into the matter.
Political Repercussions
The incident has ignited a political firestorm, with opposition leaders seizing the opportunity to criticize President Milei’s judgment and ethics. Some have gone as far as to demand impeachment proceedings, arguing that the President’s actions have undermined public trust and inflicted financial harm on citizens. The situation continues to develop, with legal and political ramifications that could significantly impact President Milei’s administration and Argentina’s political landscape.
As the investigation progresses, the Argentine public and international observers closely monitor the outcomes, which may have profound implications for the regulation of cryptocurrencies and the accountability of public officials in financial endorsements.
