Argentina’s Chief Prosecutor has ordered a $100M freeze on crypto tied to LIBRA, which faced allegations of fraud following its market collapse. President Javier Milei, linked to promoting LIBRA, is under investigation amidst disputes over harmed investors. While Milei defends his actions, claiming good faith, concerns about investor loss remain prevalent.
Argentina’s Chief Prosecutor, Eduardo Taiano, has initiated the freezing of approximately $100 million in cryptocurrency linked to the controversial LIBRA coin, according to Clarín. The LIBRA token saw a rapid surge to a market capitalization of $4.5 billion but plunged in value last February, leading to claims of a pump-and-dump operation.
President Javier Milei had publicly endorsed LIBRA on social media, asserting it would assist small businesses. However, after the token’s significant crash, he removed his promotional tweet. Currently, Milei faces fraud charges as investigations are underway into the token’s financial records and his deleted social media posts.
Prior to LIBRA’s collapse, it has been reported that a small group of wallet holders liquidated substantial amounts of the coin. Kelsier Ventures CEO Hayden Davis acknowledged profiting $100 million from the initiative, as cited by Decrypt.
Reports indicate that around 40,000 investors may have been impacted by the LIBRA token’s downfall, although Milei contends that only about 5,000 investors were involved. Authorities are now urging cooperation from law enforcement, regulators, and international exchanges to facilitate the freezing of these funds.
In his defense, Milei asserts that he promoted LIBRA sincerely, believing it would benefit entrepreneurs in Argentina. He downplayed concerns about local investors, stating, “Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most.”
This controversy surrounding LIBRA is not Milei’s first encounter with crypto-related issues; he faced legal action in 2022 for endorsing CoinX, a platform that falsely advertised high returns among its promises.
The freezing of $100 million in cryptocurrency linked to the LIBRA scandal highlights significant concerns about investor protection and regulatory oversight in Argentina’s crypto market. As investigations unfold, the implications for President Milei and the broader cryptocurrency landscape remain critical. The situation underscores the ongoing risks associated with cryptocurrency investments and the responsibilities of public figures in promoting financial products.
Original Source: www.binance.com
