Argentina’s $Libra Crypto Scandal: What Did President Milei Know?

Argentina’s new cryptocurrency, $Libra, promoted by President Javier Milei, swindled investors of $250 million. After a rapid rise in value, it collapsed due to significant stakeholders selling their shares, leading to accusations of a “rug-pull” scam. This has resulted in public outrage, calls for impeachment, and a federal investigation into President Milei’s involvement.

A new cryptocurrency named $Libra has caused significant financial losses among Argentine investors, totaling $250 million. This digital coin was promoted by President Javier Milei, who announced its launch via a tweet on Valentine’s Day. The cryptocurrency saw a rapid increase in value after its introduction, attracting numerous investments within hours; however, it soon crashed, leaving many investors empty-handed. Reports indicate that the largest stakeholders had sold their holdings prior to the collapse, resulting in what experts describe as a”rug-pull” scam.

The aftermath of this scandal has sparked outrage across Argentina. Critics have accused President Milei of deceiving the public, leading to calls for his impeachment. Consequently, citizens have initiated multiple criminal complaints, prompting a federal investigation where Mr. Milei is a central figure. Amidst this controversy, the President attended the Conservative Political Action Conference in Washington, addressing attendees just as former President Trump had promoted another cryptocurrency, $Trump, which similarly collapsed, causing extensive investor losses.

The $Libra cryptocurrency scandal has unveiled serious concerns regarding accountability and transparency in Argentina’s emerging digital economy. With President Milei under scrutiny and a federal investigation underway, the event has triggered a broader discussion about the regulation of cryptocurrency ventures and the protection of investors in high-risk environments. This incident may serve as a pivotal moment for future cryptocurrency regulations in Argentina.

Original Source: www.nytimes.com