Argentina’s Chief Prosecutor has ordered a freeze on nearly $100 million in cryptocurrency tied to the LIBRA coin scandal, amidst allegations of fraud and significant market manipulation. President Javier Milei, who promoted LIBRA, now faces scrutiny regarding investor losses and his previous crypto endorsements.
Argentina’s Chief Prosecutor, Eduardo Taiano, recently mandated the freezing of nearly $100 million in cryptocurrency associated with the controversial sale of LIBRA coins, as reported by Clarín. The LIBRA token initially surged to a market capitalization of $4.5 billion before its collapse last February, raising suspicions of potential fraud, including a possible pump-and-dump scheme.
President Javier Milei actively promoted LIBRA on the platform X, asserting it would assist small businesses. Following the token’s collapse, he deleted his promotional tweet. Currently, Milei faces allegations of fraud as investigators scrutinize the token’s financial transactions and his retracted social media posts, revealing a troubling narrative.
As investigations unfold, it has been noted that prior to LIBRA’s downfall, a select group of wallets, which held a significant portion of the supply, profited by cashing out. Kelsier Ventures CEO, Hayden Davis, reportedly earned $100 million from the project, according to Decrypt. Approximately 40,000 investors are reported to have suffered losses, although Milei contests this figure, asserting that only 5,000 were directly involved. Law enforcement agencies, regulators, and international exchanges are now being urged to collaborate in freezing the implicated funds.
In his defense, President Milei claims his promotion of LIBRA was conducted in good faith, with the intention of benefiting Argentine entrepreneurs. He downplayed the implications for local investors, stating, “Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most.” Notably, this is not the first instance of controversy surrounding Milei; in 2022, prior to his presidential role, he faced legal action for endorsing CoinX, a platform accused of making inflated return promises.
In summary, the unfolding LIBRA coin scandal in Argentina highlights serious allegations of fraud involving prominent political figures. The freezing of substantial amounts of cryptocurrency reflects the gravity of the situation as investigations continue. While President Javier Milei defends his actions, the scrutiny surrounding his promotion of LIBRA and previous crypto ventures suggests ongoing challenges for both investors and regulatory bodies in navigating the cryptocurrency landscape.
Original Source: www.binance.com
