Argentine President Javier Milei is accused of fraud related to his promotion of the cryptocurrency $LIBRA, leading to investor losses. Lawyers charge him with illicit association, and public demand for impeachment has arisen. The situation highlights the risks involved in crypto investments and ethical duties of public figures.
Argentina’s President Javier Milei faces criminal fraud allegations stemming from his promotion of the $LIBRA cryptocurrency, leading to substantial investor losses. Lawyers filed the lawsuit, claiming Milei participated in an “illicit association to commit fraud” after he endorsed the coin and promptly deleted the post. This incident has sparked widespread calls for his impeachment following his recent election victory.
$LIBRA, created by KIP Protocol and Hayden Davis, was marketed as supporting economic growth through small businesses. Milei’s social media endorsement resulted in the coin’s price soaring from near zero to $5. However, his quick deletion of the post caused the cryptocurrency’s value to plummet just hours later, incurring millions in losses for investors.
Legal representatives Jonatan Baldiviezo and others argue Milei’s actions constituted a classic “rug pull,” a term used for fraudulent cryptocurrency transitions that leave investors with worthless tokens. The lawsuit maintains that Milei violated Argentina’s Public Ethics Law, which prohibits government officials from profiting personally from their public roles. Judicial authorities are set to assign a judge for detailed investigation.
In response to the accusations, Milei’s office disclaimed awareness of the cryptocurrency’s development details. They affirmed that he was misled about the project and state that the deleted post was meant to curb speculation. Milei attributes the backlash to political opponents taking advantage of the situation.
Despite the President’s dismissal of direct involvement, his office later confirmed a meeting with KIP Protocol representatives regarding the cryptocurrency. They vouch to cooperate with the judiciary and initiated an investigation via Argentina’s Anti-Corruption Office, ensuring transparency on the matter.
The Anti-Corruption Office now investigates potential misconduct involving the National Government members, including President Milei. Moreover, a new Investigation Task Unit is established, focusing on the cryptocurrency’s launch and examining involved entities thoroughly.
Criminal fraud charges against Argentine President Javier Milei highlight concerns about cryptocurrency promotion and ethical responsibilities. His endorsement of the $LIBRA coin, followed by a significant market manipulation, has prompted a public outcry for accountability. The case underscores the potential risks tied to cryptocurrency investments and the necessity for regulatory scrutiny in the evolving digital asset landscape.
Original Source: www.business-standard.com
