Argentina’s Chief Prosecutor has frozen $100 million in crypto linked to LIBRA, a token that peaked at a $4.5 billion valuation before its collapse, raising concerns about a pump-and-dump scheme. President Milei is facing fraud charges, while disputing the number of affected investors, and has called for cooperation among law enforcement and regulators in freezing the implicated funds.
The Chief Prosecutor of Argentina, Eduardo Taiano, has ordered the freezing of approximately $100 million in cryptocurrency associated with the controversial LIBRA coin, as reported by Clarín. LIBRA experienced a meteoric rise to a $4.5 billion market capitalization before its abrupt decline in February, which has raised suspicions of a pump-and-dump scheme.
Argentina’s President, Javier Milei, initially endorsed LIBRA on the social media platform X, claiming it would be beneficial for small businesses, but he later removed his tweet following the token’s collapse. Currently, President Milei is facing allegations of fraud, with investigators delving into the financial records of LIBRA and the president’s deleted social media content.
Prior to LIBRA’s downfall, it has been reported that a select group of wallets holding the majority of the coin’s supply had already cashed out. Hayden Davis, the CEO of Kelsier Ventures, acknowledged profiting $100 million from the project, according to information from Decrypt. Contrary to reports suggesting that 40,000 investors were impacted, Milei asserts that only 5,000 individuals were involved.
Law enforcement agencies, regulatory bodies, and international exchanges have been called upon to collaborate in the effort to freeze the implicated funds related to this case. In his defense, President Milei maintained that his promotion of LIBRA was conducted in good faith, asserting that it was intended to aid Argentine entrepreneurs. He further minimized the situation’s impact on local investors by stating, “Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most.” Nevertheless, this incident is not President Milei’s first run-in with cryptocurrency matters, as he faced legal actions in 2022 for endorsing CoinX, a platform that falsely promised substantial returns.
In summary, the situation surrounding LIBRA coin has led to significant legal and financial implications in Argentina, spearheaded by Chief Prosecutor Eduardo Taiano’s actions. The collapse of LIBRA has prompted investigations into President Javier Milei’s involvement, raising questions about investor protection and regulatory accountability. Milei’s claims of good faith and minimized impact on investors are contentious amidst reports suggesting widespread losses. This case continues to unfold as authorities work to address allegations of fraud and ensure investor security.
Original Source: www.binance.com
