President Javier Milei of Argentina is facing a fraud lawsuit for promoting the $Libra cryptocurrency, which crashed shortly after his announcement. Legal action has been initiated by local lawyers, with accusations of a major scheme behind the cryptocurrency’s rapid decline. The case highlights the lack of regulation in the crypto market and has drawn widespread criticism from political opponents.
Argentina’s President Javier Milei is facing legal action from local lawyers who have filed a lawsuit for fraud. Allegations stem from Milei promoting a cryptocurrency called $Libra on social media, which subsequently collapsed in value within hours. Lawyer Jonatan Baldiviezo stated, “As part of this illegal association, the crime of fraud was committed, in which the president’s actions were essential.” The case is expected to be presented to a judge for investigation.
On the day of publication, Milei claimed that $Libra could promote economic growth by supporting small businesses and startups. However, shortly after his announcement, the cryptocurrency’s value plummeted, leading to millions of dollars in losses for investors. Expert Javier Smaldone described the incident as a “rug pull,” which refers to a scheme where major shareholders sell off assets once a currency gains value, causing it to crash.
Following the cryptocurrency’s failure, Milei distanced himself from its development, asserting ignorance of the project and accusing opposing political figures of exploiting the circumstance. The Argentine Presidential Office announced that the anti-corruption office would be involved in the investigation. They confirmed that Milei and his administration had meetings with KIP Protocol, the coin’s developers, and all relevant information would be provided to the judiciary.
In a public statement, Hayden Mark Davis, a representative from KIP Protocol, placed blame on President Milei for the currency’s collapse. Amid rising criticisms, former President Cristina Kirchner labeled Milei a “crypto scam” on social media, while Senator Martín Lousteau noted that this was the second cryptocurrency Milei had promoted that ended up being fraudulent.
The case raises broader concerns about the cryptocurrency market’s regulation and the potential for fraud, particularly when coins are heavily promoted on social media before experiencing dramatic declines. Such instances often trigger suspicions of snowball schemes within the largely unregulated cryptocurrency landscape, highlighting the need for increased scrutiny and protection for investors in this volatile market.
The legal case against President Javier Milei centers on alleged fraud related to his promotion of the $Libra cryptocurrency, which experienced a rapid collapse shortly after its announcement. Experts have characterized the event as a “rug pull,” raising concerns about the lack of regulatory oversight in the cryptocurrency market. As investigations proceed, criticisms of Milei’s actions have intensified, underscoring the ongoing challenges and risks associated with cryptocurrencies in Argentina and beyond.
Original Source: evidencenetwork.ca
