Javier Milei, President of Argentina, is under investigation for potential fraud related to the cryptocurrency $LIBRA, which he endorsed. After its value plummeted, he removed promotional posts, leading to allegations of a scam. Critics demand accountability, while Milei’s office claims he is not implicated in the cryptocurrency’s development. The situation may affect his political standing going into the 2025 elections.
Javier Milei, the President of Argentina, is currently facing fraud allegations linked to the cryptocurrency $LIBRA, which has experienced significant volatility, impacting numerous investors. A judge, Maria Servini, has been appointed to investigate Milei’s potential illegal involvement with $LIBRA, which had been promoted by him as a means of fostering economic development.
The controversy escalated after Milei publicized $LIBRA on social media, claiming its intent was to drive economic growth by supporting startups and small businesses. The cryptocurrency initially reached a market capitalization of $4 billion; however, its value soon collapsed, leading critics to suspect a possible fraud scheme. Following the sharp decline, Milei removed his promotional post from social media platforms.
Critics speculate that this situation may represent a “rug pull” fraud, where initial investors inflate the asset’s value before rapidly withdrawing their investments, causing a plummet in worth for other investors. Following the collapse, Milei’s office issued a statement clarifying that he was not involved in the development of the cryptocurrency, asserting his role solely as a promoter of various business ventures in a free-market context.
According to an unnamed government official, Milei himself is the real victim in this scenario, as he typically advocates for private ventures. However, opposition figures insist that Milei’s endorsement of the cryptocurrency constituted participation in a fraudulent scheme, holding him accountable for the financial repercussions faced by numerous investors.
Legal representatives, including Jonatan Baldiviezo, have accused Milei of fraud and assert that over 40,000 individuals have lost significant savings due to the alleged scam associated with $LIBRA. Observatorio del Derecho a la Ciudad, a local NGO, has echoed these allegations, claiming that the president’s actions contributed to requiring accountability for the financial turmoil that transpired.
Even Hayden Davis, one of the developers linked to the cryptocurrency, acknowledged that Milei’s sudden withdrawal of support was critical to its decline. Although experts believe an impeachment trial is unlikely, the allegations may damage Milei’s financial reputation as he approaches the 2025 midterm elections. In defense, Milei attributed the outrage to political opposition, expressing a determination to counterattack against his critics.
The allegations against President Javier Milei regarding his involvement with the $LIBRA cryptocurrency have invoked significant scrutiny and criticism. Following the cryptocurrency’s drastic fall in value after his promotion, investigations are underway to determine the legality of his actions. While officials maintain that Milei is a victim of circumstance, opposition figures and legal representatives assert that he bears responsibility for the financial losses incurred by numerous investors. The unfolding situation could have lasting implications for Milei’s political credibility ahead of upcoming elections.
Original Source: www.aljazeera.com
