Argentina’s Chief Prosecutor Freezes $100M in LIBRA Coin Scandal

Argentina’s Chief Prosecutor has ordered the freezing of $100 million in cryptocurrency linked to the LIBRA coin scandal. President Javier Milei faces fraud charges as investigations into the financial misconduct surrounding LIBRA continue, with conflicting reports on the number of affected investors.

Argentina’s Chief Prosecutor, Eduardo Taiano, has mandated the freezing of approximately $100 million in cryptocurrency associated with the sale of LIBRA coins, as reported by Clarín. This decision follows LIBRA’s rapid rise to a market capitalization of $4.5 billion, which ultimately culminated in a significant crash last February, leading to allegations of a potential pump-and-dump scheme.

President Javier Milei formerly endorsed LIBRA on the social media platform X, asserting its capacity to aid small businesses. However, he subsequently retracted his tweet following the token’s collapse. Currently, Milei faces fraud charges as authorities probe the financial records tied to the token, alongside his deleted posts on social media.

Prior to the downfall of LIBRA, a limited number of wallets controlling the majority of the supply reportedly withdrew their assets. Hayden Davis, the CEO of Kelsier Ventures, acknowledged garnering a sum of $100 million from the project, as reported by Decrypt. While estimates suggest that around 40,000 investors were affected by the token’s failure, President Milei contests this figure, asserting that only 5,000 investors experienced losses.

Law enforcement agencies, as well as regulators and international exchanges, have been requested to collaborate in the effort to stabilize and freeze the implicated funds. In his defense, Milei maintains that his promotion of LIBRA was well-intentioned, asserting its potential to assist Argentine entrepreneurs. He downplayed the repercussions on local investors by remarking,
“Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most.”

However, this incident is not the first instance of controversy surrounding Milei and cryptocurrency. In 2022, prior to his presidential term, he faced legal actions for endorsing CoinX, a platform that made misleading promises of substantial financial returns.

In summary, the $100 million cryptocurrency freeze mandated by Argentina’s Chief Prosecutor highlights the ongoing investigation into the LIBRA coin scandal. As President Javier Milei faces fraud allegations, the extent of investor impact remains contested. Nonetheless, the situation underscores the necessity for stringent regulatory oversight in the cryptocurrency sector to protect investors.

Original Source: www.binance.com