President Javier Milei is being investigated for promoting the cryptocurrency ‘$LIBRA,’ which crashed shortly after he endorsed it, resulting in billions lost by investors. Complaints allege fraud and misconduct, with opposition leaders calling for impeachment. Authorities are launching inquiries into key figures involved with the token.
Federal prosecutors are launching an investigation into President Javier Milei for endorsing the cryptocurrency ‘$LIBRA,’ which suffered a significant crash, resulting in substantial losses for investors. The investigation has been assigned to Federal Court No. 1 under Judge María Servini and will examine potential fraud or misconduct related to Milei’s recent tweets promoting the digital currency.
Milei’s initial post, declaring $LIBRA a means to attract investment to Argentina, led to the token’s value skyrocketing before plummeting hours later. Critics, including economists and political opponents, quickly condemned the endorsement, suggesting the scheme might resemble a Ponzi fraud or a “rug pull,” where developers exploit investors before cashing out.
The Observatorio de Derecho la Ciudad, among others, filed complaints claiming that the actions of Milei and others constituted a criminal conspiracy causing unprecedented financial losses, exceeding $4 billion for over 40,000 investors. There are allegations that a large share of $LIBRA was held by a few individuals prior to the President’s endorsement, enabling them to profit massively before the token’s value collapsed.
Milei subsequently distanced himself from the project, admitting a lack of knowledge regarding its details and denying any connection to the company responsible. This has ignited calls for impeachment from opposition leaders, specifically accusing him of being a “crypto-scammer” and proposing the establishment of a parliamentary commission to investigate.
As the controversy unfolds, Argentina’s Anti-Corruption Office is tasked with assessing any potential improprieties by government officials, including Milei. Judicial authorities are also investigating associates of Milei involved in the promotion of $LIBRA, including a request for forensic analysis of digital platforms linked to the case.
The timeline indicates that the value increase in $LIBRA occurred almost instantaneously following Milei’s promotion, leading plaintiffs to assert that his actions were neither coincidental nor uninformed. They are requesting judicial measures to secure evidence from the presidential residence and preserve all digital communications related to the matter.
Javier Smaldone, known for exposing financial fraud, characterized the incident as a classic ‘rug pull’ scheme in which initial promoters withdraw liquidity, causing the cryptocurrency’s collapse. Smaldone approximates that this fraudulent operation lasted around two hours, entailing transactions of about $4.4 billion.
The investigation into President Javier Milei centers on his endorsements of the now-defunct $LIBRA cryptocurrency, which led to severe financial losses. Allegations of fraudulent schemes and possible impeachment are gaining momentum among opposition leaders. As authorities commence inquiries, the outcome may have significant implications for Milei’s administration and the broader regulatory landscape for cryptocurrencies in Argentina.
Original Source: www.batimes.com.ar
