President Javier Milei of Argentina faces fraud allegations after promoting $Libra cryptocurrency, which collapsed hours later, causing millions in investor losses. Expert descriptions of the incident suggest a potential “rug pull” scheme, and there is ongoing investigation into the circumstances surrounding the promotion and subsequent failure of the coin.
Argentina’s President Javier Milei is facing a criminal lawsuit filed by local lawyers who allege his promotion of a cryptocurrency called $Libra, which he claimed would support economic growth for small businesses. Shortly after the promotion on social media, the currency collapsed, resulting in significant losses for investors, estimated in the millions. According to lawyer Jonatan Baldiviezo, Milei’s actions were critical in what is being termed a fraud case.
On social media, Milei boasted about $Libra, but after just hours, the value plummeted. Expert Javier Smaldone described the incident as a “rug pull” — a scheme common in the crypto sector where early investors entice many to buy before the initial investors sell off their stakes, causing the currency to crash. He noted that the rapid profit from $Libra reached approximately $107 million.
Following the currency’s failure, Milei claimed ignorance regarding the coin’s development and accused his political adversaries of exploiting the situation. The Presidential Office pledged to collaborate with the anti-corruption body to investigate the transactions related to $Libra, confirming that Milei and his team were in talks with the developers, KIP Protocol.
KIP Protocol representative Hayden Mark Davis attributed the cryptocurrency’s downfall to Milei, emphasizing the president’s role in the promotion that preceded the crash. Despite the backlash, Milei assured prompt action by the anti-corruption authority, asserting his non-involvement in its development. Meanwhile, criticisms grew from opposition figures, including former President Christina Kirchner who labeled the incident a “crypto scam.”
The cryptocurrency sector is rife with allegations of fraud, particularly when coins are promoted heavily on social media before their values decline sharply. Such patterns have raised concerns among experts who frequently suspect that these cases could reflect snowball systems. Unlike traditional securities trading, cryptocurrency markets are less regulated, increasing the potential for deceptive practices.
The lawsuit against President Milei centers on allegations of fraud related to the promotion of the $Libra cryptocurrency, which rapidly lost value after his endorsement. Experts highlight the risks involved with cryptocurrency transactions, particularly in poorly regulated markets. The case underscores the accountability politicians have when promoting financial products and raises questions about regulatory oversight in the cryptocurrency sector.
Original Source: evidencenetwork.ca
