Argentina’s Chief Prosecutor Freezes $100 Million in LIBRA Coin Scandal

Argentina’s Chief Prosecutor has ordered the freezing of $100 million in cryptocurrency linked to LIBRA coins, amidst allegations of fraud. President Javier Milei promoted the token before its collapse and now faces charges. While the number of affected investors is contested, law enforcement has been urged to cooperate in freezing the funds related to this case.

Argentina’s Chief Prosecutor, Eduardo Taiano, has mandated the freezing of nearly $100 million in cryptocurrency associated with the sale of LIBRA coins, as reported by Clarín. LIBRA, which once reached a market capitalization of $4.5 billion, faced significant allegations of a pump-and-dump scheme before its collapse last February. The situation has raised concerns about the integrity of the cryptocurrency market in Argentina.

President Javier Milei had previously endorsed LIBRA on social media, suggesting it would benefit small businesses. However, following the token’s decline, he deleted his promotional tweet. Currently, Milei is confronting fraud charges, with investigations focusing on the financial records of LIBRA and his deleted posts.

Investigations revealed that prior to LIBRA’s downfall, a select number of wallets that held much of the token’s supply were able to cash out substantial amounts. CEO of Kelsier Ventures, Hayden Davis, acknowledged earning $100 million from the venture. Reports indicate that approximately 40,000 investors suffered losses, although Milei contends only 5,000 were actually involved.

Authorities have urged cooperation among law enforcement, regulators, and international exchanges to ensure the freezing of involved funds. In his defense, Milei claims he promoted LIBRA in good faith, believing in its potential benefits for entrepreneurs. He downplayed the losses by stating, “Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most.”

This incident marks yet another element of controversy troubling Milei, who faced legal issues in 2022 for endorsing CoinX, a platform that made false promises regarding investment returns before his presidency.

In summary, Argentina’s Chief Prosecutor has initiated action against LIBRA coins, highlighting significant concerns over fraudulent practices in the cryptocurrency sector. With President Javier Milei facing fraud allegations and defending his intentions regarding LIBRA, the situation underscores the complexities and risks associated with cryptocurrency investments in Argentina. Collaboration among regulatory bodies will be crucial in navigating this scandal and protecting investors.

Original Source: www.binance.com