Javier Milei faces fraud allegations over cryptocurrency $LIBRA, which experienced a rapid rise and fall, causing significant investor losses. A federal judge is investigating Milei’s potential illegal involvement. Critics suggest it was a ‘rug pull’ scam and demand accountability, with some exploring the possibility of impeachment depending on the investigation results.
Javier Milei, President of Argentina, is currently facing serious fraud allegations linked to the promotion of the cryptocurrency $LIBRA. A federal judge, Maria Servini, has been appointed to investigate whether Milei engaged in illegal activities regarding this cryptocurrency, which had a meteoric rise and fall shortly after its launch, costing investors significant sums.
The controversy ignited on Friday when Milei endorsed $LIBRA via social media, claiming it was intended to stimulate economic growth by providing funding for small businesses and startups. Supported by Milei’s promotion, the cryptocurrency initially surged to a market capitalisation of $4 billion but subsequently plummeted, leading to suggestions that it might be a scam.
As the $LIBRA’s value collapsed, Milei deleted his promotional post. Critics have raised alarms over the potential for a “rug pull” scheme, where early investors profit while later investors are left with devalued assets. In the wake of the fallout, Milei’s office issued a statement distancing him from the currency’s creation, asserting his role was merely as a promoter of entrepreneurial projects.
Milei’s administration emphasized that he routinely supports business ventures to bolster job creation and attract investment. One anonymous government official remarked, “The only one on the face of this earth who was cheated is Milei,” indicating that he also has nothing to gain from the cryptocurrency’s downward trajectory.
Despite his office’s claims, critics have pointed out that the cryptocurrency was available on a website that incorporated Milei’s slogan, suggesting deeper involvement. Jonatan Baldiviezo, a lawyer representing plaintiffs, articulated that Milei was integral to the fraud.
The Observatorio del Derecho a la Ciudad, a local NGO, similarly accused Milei of orchestrating a scheme that harmed over 40,000 individuals, resulting in losses exceeding $4 billion. Even a developer associated with $LIBRA acknowledged that Milei’s withdrawal led to the cryptocurrency’s steep decline in value.
While experts view the likelihood of impeachment as low, the scandal could undermine Milei’s economic credibility ahead of the midterm elections in 2025. In his defense, Milei attributed the outcry to his political adversaries, asserting it strengthened his determination to counteract them.
The situation surrounding President Javier Milei and the $LIBRA cryptocurrency raises serious questions regarding his involvement and potential fraud. As investigations unfold, the fallout may impact Milei’s political standing and economic credibility ahead of future elections. Overall, this incident underscores the importance of transparency and responsibility in the promotion of financial ventures, especially in volatile markets.
Original Source: www.aljazeera.com
