Javier Milei Under Investigation for Alleged Cryptocurrency Fraud
Argentina’s President Javier Milei is under investigation for potential fraud linked to the $LIBRA cryptocurrency, which he promoted before its rapid decline. Critics allege that his endorsement and connections to the cryptocurrency may have misled investors, leading to significant financial losses. The situation may impact Milei’s credibility, particularly ahead of the 2025 elections, despite his office asserting he is not directly involved with the currency’s development.
Javier Milei, President of Argentina, is facing allegations of fraud linked to the cryptocurrency $LIBRA. Federal Judge Maria Servini has been appointed to investigate his potential illegal activities associated with the cryptocurrency, following accusations that investors lost thousands due to Milei’s promotion of the coin on social media.
The scandal began when Milei endorsed the $LIBRA cryptocurrency, claiming it would drive economic growth and support small businesses. The cryptocurrency surged to a market capitalization of $4 billion but rapidly declined, prompting skepticism regarding its legitimacy. Critics described the incident as a possible scam similar to a ‘rug pull’.
As the value of $LIBRA plunged, Milei removed his promotional posts. His office later issued a statement denying any connection to the cryptocurrency’s development and clarifying that his support for various business ventures is part of his free-market policy approach. Officials claimed the true victim of the situation is Milei himself, who frequently promotes entrepreneurial projects.
However, the cryptocurrency was marketed on a website using Milei’s slogan, which raised further questions about his involvement. Legal claims have been filed against him, asserting that his actions contributed to the alleged fraud.
According to Jonatan Baldiviezo, one of the plaintiffs, it is asserted that Milei’s behavior was central to the fraudulent scheme surrounding $LIBRA. Local NGO Observatorio del Derecho a la Ciudad has also condemned Milei for causing financial losses to thousands, estimating over $4 billion in damages. Even one of the developers of the currency, Hayden Davis, indicated that a withdrawal of support from Milei contributed to the currency’s collapse.
Experts believe that although the likelihood of impeachment proceedings against Milei is low, the allegations may tarnish his economic reputation ahead of the 2025 midterm elections. In response to the allegations, Milei dismissed critics as political adversaries, asserting his commitment to oppose them vigorously.
The case against President Javier Milei regarding the $LIBRA cryptocurrency raises serious concerns about his involvement in alleged fraudulent activities that may have jeopardized the finances of thousands of investors. Investigations are ongoing, and while impeachment seems unlikely, the implications for Milei’s political future could be significant as he faces growing scrutiny. As this situation unfolds, it remains to be seen how it will affect his administration and credibility.
Original Source: www.aljazeera.com
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