Argentina’s Javier Milei Under Fire Amid Cryptocurrency Fraud Allegations

Javier Milei, President of Argentina, faces fraud allegations connected to the $LIBRA cryptocurrency, which he promoted. An investigation is underway to determine the legality of his actions after the currency’s rapid decrease in value led to significant losses for investors. Critics suspect Milei’s involvement in a scam, raising questions about his political future.

Argentina’s President Javier Milei is currently facing allegations of fraud linked to the cryptocurrency $LIBRA, which he promoted via his social media accounts. A judge, Maria Servini, has been appointed to lead an investigation into Milei’s involvement amidst claims that investors have suffered significant losses due to the sudden collapse of the cryptocurrency. The investigation will determine whether Milei engaged in any illegal activities regarding this scheme.

The controversy began when Milei endorsed $LIBRA, asserting that the cryptocurrency would stimulate economic growth by investing in small businesses. After receiving considerable attention, $LIBRA saw its market capitalization soar to $4 billion before plummeting in value, leading many to classify it as a possible scam or hoax. As the cryptocurrency’s worth dwindled, Milei promptly removed his promotional post from social media.

Critics have pointed to the collapse as indicative of a potential “rug pull” scheme, where initial backers artificially inflate a currency’s value before withdrawing their investments. This scenario often leaves investors with depreciated coins while the originators profit from the initial gain. In the wake of the issues surrounding $LIBRA, Milei’s office distanced the president from the cryptocurrency, asserting his lack of involvement in its creation.

The president’s office emphasized that Milei frequently promotes various business initiatives as part of his broader commitment to a free-market economy. An unnamed official defended Milei by stating he himself has not benefited from the cryptocurrency fallout. However, opposition figures have accused Milei of being integral to the cryptocurrency’s promotion, pointing to its sale on a website that echoes his political messaging.

A lawsuit filed by the NGO Observatorio del Derecho a la Ciudad claims Milei’s actions have financially harmed over 40,000 people and resulted in losses exceeding $4 billion. Jonatan Baldiviezo, a lawyer involved in the lawsuit, has called for accountability, asserting that “within this illicit association, the crime of fraud was committed.” Additionally, Hayden Davis, a developer tied to $LIBRA, criticized Milei for his abrupt withdrawal of support.

While analysts believe it is unlikely that this scandal will result in an impeachment trial for Milei, it may affect his political standings ahead of the upcoming midterm elections. Milei has publicly attributed the scandal to his political adversaries, stating, “This increases our conviction to kick them in the [a]”.

In summary, President Javier Milei faces serious allegations related to the cryptocurrency $LIBRA, which he publicly promoted. The investigation spearheaded by Judge Maria Servini aims to uncover the legality of Milei’s actions, as critics point to significant losses experienced by investors. Amidst rising scrutiny and potential political fallout, the president remains defiant against accusations, attributing the controversy to his opponents.

Original Source: www.aljazeera.com