The investigation into President Javier Milei follows his endorsement of the $LIBRA cryptocurrency, which crashed and caused massive financial losses. The court is examining potential fraud and misconduct, with opposition politicians calling for impeachment. The case highlights concerns about the legitimacy of cryptocurrency promotions and investor safety.
Federal prosecutors in Argentina have initiated an investigation into President Javier Milei for endorsing the $LIBRA cryptocurrency, which subsequently collapsed and resulted in significant losses for investors. The Federal Court No. 1, led by Judge María Servini, will determine if Milei engaged in fraudulent activities or breached his responsibilities in supporting this digital asset. His endorsement appeared on social media last Friday, stating, “The world wants to invest in Argentina. $LIBRA,” before the token’s value soared and then crashed within hours.
The cryptocurrency was marketed as a private endeavor aimed at stimulating economic growth by funding small businesses and startups. Economists, crypto experts, and opposition figures have criticized Milei, suggesting the token may be a scam or even a Ponzi scheme. Observers have noted that $LIBRA exhibited characteristics of a “rug pull,” wherein developers attract investors and subsequently cash out once the asset rises in value.
According to the rights NGO Observatorio de Derecho la Ciudad, Milei is implicated in forming a “criminal organization” involved in the fraudulent operation of the $LIBRA crypto, negatively impacting over 40,000 individuals and causing losses exceeding $4 billion. The publication Kobeissi Letter reported that significant investors liquidated large quantities of $LIBRA shortly after its launch, taking advantage of the token’s price surge.
In conclusion, President Javier Milei is under investigation for allegedly promoting the $LIBRA cryptocurrency, which resulted in substantial financial losses for investors. The judicial proceedings will scrutinize whether his actions constituted fraud or misconduct. This investigation has sparked political backlash and prompts further scrutiny into the legitimacy of cryptocurrency endorsements, highlighting the potential risks involved in digital asset investments.
Original Source: www.batimes.com.ar
