Investigation Launches into President Milei Over Cryptocurrency Scandal
Federal prosecutors are investigating President Javier Milei for promoting a cryptocurrency, $LIBRA, that led to significant investor losses. The case is being handled by Federal Court No. 1, with potential allegations of fraud and misconduct being assessed. The situation has prompted calls for impeachment from opposition parties, reflecting broader concerns about cryptocurrency regulations in Argentina.
Federal prosecutors are set to investigate Argentine President Javier Milei for his promotion of the cryptocurrency ‘$LIBRA’, which resulted in significant financial losses for investors. The case has been assigned to Federal Court No. 1, led by Judge María Servini, who will explore any potential fraud or misconduct relating to Milei’s support for the cryptocurrency on social media last Friday. The cryptocurrency experienced a rapid rise in value followed by a sharp decline shortly thereafter.
Milei’s initial tweet stated, “The world wants to invest in Argentina. $LIBRA,” describing the token as a digital asset designed to foster economic growth by funding small businesses. Critics, including economists and political opposition, quickly labeled the cryptocurrency a potential Ponzi scheme, warning that it may have been structured as a scam designed to benefit a select few.
The rights NGO Observatorio de Derecho la Ciudad alleges that Milei was part of a “criminal organization” that orchestrated fraud involving $LIBRA, impacting over 40,000 individuals with losses estimated at over $4 billion. Concerns were raised regarding the distribution of the token, where it was reported that 80% was held by a small number of individuals prior to Milei’s endorsement, resulting in a rapid liquidity withdrawal once its value peaked.
Reacting to the fallout, opposition figures have begun impeachment proceedings against Milei, while former President Cristina Fernández Kirchner openly condemned him as a “crypto-scammer.” Furthermore, calls for a special parliamentary investigation into Milei’s actions are gaining traction as stock prices plummet in response to the crisis.
In light of these events, Argentina’s Anti-Corruption Office is set to investigate any improper conduct by government officials, including the President, and a task force will focus on the details surrounding the launch of the $LIBRA cryptocurrency. The investigation will also encompass individuals and companies involved in its promotion and distribution.
As the judiciary examines the situation, plaintiffs assert that Milei’s promotion was deliberate, highlighting the short time gap between the cryptocurrency’s launch and his endorsement. They are seeking approval for a raid on his presidential residence and digital investigations to recover evidence of potential fraud. This case reflects broader concerns about cryptocurrency regulations and investor protections in Argentina.
Digital fraud expert Javier Smaldone weighed in, stating that the situation exemplified a “rug pull,” where initial liquidity is provided to attract investors before the assets’ controllers withdraw their investment and cause a collapse. Initial estimates indicate that approximately $107 million was extracted from the scheme amidst substantial market activity.
The investigation into President Javier Milei’s role with the cryptocurrency ‘$LIBRA’ highlights significant concerns regarding potential fraud and investor protections within the Argentine market. As authorities examine the allegation of misconduct, the case has sparked political repercussions, including impeachment discussions and increased scrutiny on cryptocurrency practices in the country. This incident raises critical questions about regulatory frameworks needed to safeguard investors in the evolving digital asset landscape.
Original Source: www.batimes.com.ar
