President Javier Milei of Argentina has denied allegations of promoting the $LIBRA cryptocurrency, which collapsed, leading to billions in investor losses. Milei stated that the controversy is a matter between private parties. Argentina’s federal prosecutor’s office is launching an investigation into potential fraud, while opposition figures call for impeachment and investigations into the cryptocurrency’s operations.
Argentine President Javier Milei has denied any involvement in the promotion of the $LIBRA cryptocurrency, which recently collapsed, resulting in significant financial losses for investors. In an interview with broadcaster TN, Milei asserted, “I did not promote it, I spread it,” emphasizing that the situation involves private entities without state interference. He maintained that his intentions were pure, stating, “I acted in good faith.”
As reported, Argentina’s federal prosecutor’s office is investigating potential fraud or violations of duty connected to Milei’s social media endorsement of $LIBRA. Following its rapid value surge followed by a drastic fall, Milei retracted his support within hours, admitting a miscalculation. Critics have raised concerns, suggesting the cryptocurrency might be a fraudulent scheme, with indications it resembled a “rug pull,” a tactic where developers defraud investors by disappearing after cashing in.
The Observatory for the Right to the City, a rights NGO, accused Milei of being part of a “criminal organization” involved in the $LIBRA fraud, impacting over 40,000 individuals who lost upwards of $4 billion. Analysts from The Kobeissi Letter noted that shortly after its launch, major investors liquidated substantial positions in $LIBRA, signaling possible erratic trading behavior.
Despite claiming ignorance regarding the intricate details of the project and stating, “I obviously have no connection” with the private company involved, Milei’s detractors, including former President Cristina Kirchner, labeled him a “crypto-scammer.” Meanwhile, opposition parliamentarians are demanding impeachment proceedings, alongside efforts to establish a parliamentary commission for a thorough inquiry.
Following the incident, the Buenos Aires Stock Exchange witnessed a significant decline, with values dropping by as much as 8 percent. Argentina’s Anti-Corruption Office is actively investigating any misconduct associated with the launch of $LIBRA and the involved parties, including Julian Peh, CEO of firms linked to the cryptocurrency, and Martin Menem, Chamber of Deputies president, who had shared Milei’s endorsement.
Political analyst Carlos Germano noted that the controversy could damage Milei’s credibility amongst the electorate, notwithstanding his popularity stemming from efforts to control inflation. Nonetheless, Milei continues his presidential duties, engaging with international figures, including Republican Senator Steve Daines, and is scheduled for a visit to the United States later this week.
The controversy surrounding President Javier Milei and the collapsed $LIBRA cryptocurrency has ignited a significant investigation into potential misconduct, with accusations of fraud and calls for impeachment. While Milei asserts his innocence, claiming he merely disseminated information, critics raise alarms about the legitimacy of the cryptocurrency. The resulting turmoil has adversely impacted the stock market and triggered a broader inquiry into state corruption. The ultimate outcome of the investigations could influence Milei’s political standing and public trust.
Original Source: www.wyomingnewsnow.tv
