Argentina’s President Javier Milei promoted a cryptocurrency called $LIBRA but quickly retracted his support after criticism arose. Economists and political figures labeled the asset a potential scam, prompting a government investigation. Accusations followed, with former President Kirchner branding Milei as a “crypto-scammer.”
Argentina’s President Javier Milei recently promoted a cryptocurrency called $LIBRA, claiming it as a way to attract investment to the country. However, just hours after announcing it on social media, he retracted his support, stating he was unaware of the project’s specifics and had no ties to the company behind it.
Critics, including economists and opposition figures, quickly condemned the digital asset as potentially fraudulent, likening it to a Ponzi scheme. The emergence of $LIBRA was marked by an alarming increase in selling pressure soon after its launch, with significant investors liquidating millions of dollars. Reports indicate that the cryptocurrency peaked at a market cap of $4.6 billion before experiencing a rapid decline.
Amid these developments, the Argentine presidency announced an investigation into the cryptocurrency project. The Anti-Corruption Office will analyze whether any government members, including President Milei, were involved in improper conduct related to $LIBRA. The government emphasized that Milei did not take part in the asset’s development.
Critics labeled the operation a “global scam,” with reports estimating profits of approximately $107 million from the venture. Former President Cristina Kirchner publicly accused Milei of being a “crypto-scammer,” urging Parliament to form a special commission to examine the situation. Meanwhile, supporters defended Milei’s actions, claiming they were aimed at bolstering the Argentine economy without any intent to commit fraud.
The incident with Argentina’s $LIBRA cryptocurrency highlights the risks associated with emerging digital assets, particularly when linked to governmental endorsements. Javier Milei’s quick withdrawal of support and the ensuing investigation underscore the need for transparency and caution in the rapidly evolving crypto market amid allegations of fraud and deception.
Original Source: m.economictimes.com
