Argentine President Javier Milei denied promoting the failing cryptocurrency $LIBRA, which caused billions in losses for investors. Prosecutors are investigating possible fraud, while critics label Milei a “crypto-scammer.” The presidency has launched a task force to examine the incident, and market reactions reflect investor concerns over potential misconduct.
On Monday, Argentine President Javier Milei categorically denied involvement in promoting a cryptocurrency known as $LIBRA, which recently experienced a catastrophic crash, leading to significant financial losses for investors. He asserted during an interview with broadcaster TN, “I did not promote it, I spread it,” emphasizing that the matter pertains to private entities rather than governmental action. Milei claimed, “I acted in good faith” regarding his previous comments on the digital asset.
The federal prosecutor’s office in Argentina is now tasked with investigating whether Milei engaged in fraudulent activities or violated his official responsibilities when he commended the $LIBRA cryptocurrency on social media. Following its surge in value, the cryptocurrency’s price plummeted, prompting Milei to retract his endorsement. Critics, including economists and political opponents, have raised concerns that the project could be a fraudulent scheme, such as a Ponzi scheme or a rug pull, where investors are deceived by developers who subsequently withdraw their funds.
Several complainants, including the rights NGO Observatory for the Right to the City, allege that Milei is part of a “criminal organization” involved in defrauding numerous investors, affecting over 40,000 individuals with losses exceeding $4 billion. According to the Kobeissi Letter, significant sell-offs occurred shortly after $LIBRA’s launch, indicating potential manipulation and indicating substantial financial gains for early investors. Though Milei claimed ignorance about the project’s specifics before deciding to halt promotion, he denied any involvement with the alleged company behind $LIBRA.
In response, former president Cristina Kirchner labeled Milei a “crypto-scammer,” and opposition members are pursuing impeachment proceedings against him. Concurrently, other political factions are advocating for the establishment of a special parliamentary committee to scrutinize Milei’s actions. Amidst growing scrutiny, the Buenos Aires Stock Exchange experienced sharp declines, with an overall decrease of 5.58 percent.
To address these concerns, the Argentine presidency announced that the Anti-Corruption Office would investigate any improper conduct related to the incident. A task force will also be created to urgently examine the launch of the $LIBRA cryptocurrency and identify individuals or companies involved. The prosecutor’s office aims to investigate Julian Peh, CEO of companies linked to $LIBRA, and other key figures, including Chamber of Deputies president Martin Menem, for their roles.
Political analyst Carlos Germano noted that this controversy could impact Milei’s credibility; however, his initiatives to combat inflation, currently at its lowest rate in four years, are still seen positively by the electorate. Despite the unfolding situation, Milei fulfilled his presidential obligations on Monday, including hosting Republican Senator Steve Daines in Buenos Aires right before his upcoming visit to the United States.
In summary, President Javier Milei faces allegations regarding his involvement with the $LIBRA cryptocurrency, which suffered a significant crash resulting in vast financial losses for investors. As investigations unfold, Milei maintains his innocence, asserting he acted in good faith while emphasizing the private nature of the matter. Despite political opposition and declining market confidence, he continues to pursue his presidential duties amid the controversy.
Original Source: www.wyomingnewsnow.tv
