Argentina’s Chief Prosecutor froze $100M in digital assets tied to LIBRA tokens after President Milei’s public endorsement inflated its value. Following the crash, fraud charges emerged, leading to inquiries on legitimacy. Creator Hayden Davies faces scrutiny for alleged payments to Milei’s sister, raising bribery and impeachment discussions. Regulatory bodies are tightening oversight amidst growing concerns over cryptocurrencies.
The LIBRA scandal escalated as Eduardo Taiano, Argentina’s Chief Prosecutor, ordered the freezing of approximately $100 million in digital assets linked to the $LIBRA token sales. This action stems from a fiasco following Argentine President Javier Milei’s public endorsement, which initially inflated the token’s value to $4.56 billion but ultimately led to significant losses for investors amounting to about $250 million as the price plummeted to $257 million.
Dubbed Cryptogate, this incident has been termed the “first big scandal” of Milei’s presidency by The Economist. Meanwhile, Milei has faced fraud charges due to his involvement in promoting the token despite participating in its controversial history. Concerns have been raised regarding the token’s legitimacy and its effects on Argentina’s stock market, prompting further scrutiny.
In light of these developments, Prosecutor Taiano has requested detailed transaction records related to the $LIBRA project alongside deleted social media posts. This is seen as a critical effort to gather evidence as Milei and his associates removed posts linked to the promotion of the coin, intensifying investigations surrounding the matter.
Additionally, Hayden Davies, the creator of the LIBRA token, is under investigation for his connections with Milei. On-chain analysts uncovered communications between Davies and a businessman that suggested payments were made to Milei’s sister in return for political assistance. The message indicated a request: “SEND $$ to MILEI’S SISTER and he will sign and DO WHAT I WANT.” These revelations have led to talks of impeachment and accusations of bribery.
Despite growing concerns about crypto-related activities, Argentina’s National Securities Commission (CNV) opted not to intervene in the LIBRA case. However, increased regulatory scrutiny of digital assets signifies a tightening oversight landscape in Argentina as authorities respond to the rising complexities of cryptocurrency regulation.
The LIBRA scandal highlights significant concerns regarding cryptocurrency regulation in Argentina, particularly under the tumultuous presidency of Javier Milei. The Chief Prosecutor’s actions and the uncovering of potential corruption emphasize the need for thorough examination and accountability in crypto activities. As investigations progress and discussions around impeachment develop, the evolving regulatory environment indicates a shift toward greater scrutiny of digital assets in the country.
Original Source: www.tronweekly.com
