Argentina’s President Javier Milei is under investigation for allegations of fraud linked to the cryptocurrency $LIBRA, which collapsed in value shortly after its launch, leading to substantial investor losses. Critics suggest Milei’s promotion of the currency contributed to its initial rise and fall, prompting formal inquiries into his actions. Depending on the outcome, Milei could face serious political ramifications including potential impeachment.
Argentina’s President Javier Milei is under investigation following allegations of fraudulent activity tied to the promotion of the cryptocurrency $LIBRA. Federal Judge Maria Servini has been appointed to lead the inquiry, scrutinizing Milei’s potential illegal involvement in the significant fluctuations in the cryptocurrency’s value, which has reportedly cost investors millions.
The controversy began with the launch of $LIBRA, which Milei endorsed through his social media platforms. He positioned the cryptocurrency as a means to stimulate economic growth by supporting small businesses. However, after initially surging to a $4 billion market cap, its value plummeted, leading some critics to label it a scam.
As the value of $LIBRA rapidly declined, President Milei removed his promotional posts, prompting allegations of a “rug pull,” a scheme where early investors benefit at the expense of later ones. In response, Milei’s office distanced him from $LIBRA’s creation and stated that he regularly promotes various business ventures as part of his agenda to foster entrepreneurship.
An anonymous government official stated that Milei himself may be the primary victim of this situation, highlighting that promoting private initiatives aligns with his policies. Nevertheless, critics pointed out that the cryptocurrency was marketed through a site echoing Milei’s catchphrase, raising suspicion of his complicity.
Jonatan Baldiviezo, a lawyer involved in the case, asserted personal accountability on Milei’s part, establishing that fraudulent actions were linked to his involvement. Furthermore, the NGO Observatorio del Derecho a la Ciudad has accused Milei of orchestrating a scheme impacting over 40,000 individuals who collectively lost substantial amounts due to the cryptocurrency’s fallout.
Even Hayden Davis, a developer of the cryptocurrency, criticized Milei for withdrawing support and removing promotional materials, which allegedly contributed to the drastic loss in value. Experts believe that while an impeachment hearing against Milei is improbable, this incident may undermine his economic credibility in the upcoming midterm elections.
In the wake of these allegations, Milei has directed his frustration towards his political adversaries via social media, proclaiming the need to advance his political agenda with renewed vigor.
In summary, President Javier Milei of Argentina is facing serious allegations regarding his involvement in the promotion of the cryptocurrency $LIBRA, which has suffered a severe decline in value, leading to significant financial losses for investors. As investigations unfold, opposition politicians warn of potential impeachment proceedings against him. The situation raises broader concerns about transparency and accountability in cryptocurrency ventures and the implications for Milei’s political future ahead of upcoming elections.
Original Source: www.aljazeera.com
