Javier Milei faces fraud allegations tied to the cryptocurrency $LIBRA, investigated by Judge Maria Servini. Promoted as a tool for economic growth, $LIBRA’s value surged and then collapsed, leading to investor losses. Critics claim this reflects fraudulent activity, with Milei’s defense asserting he was not directly involved. The scandal may impact Milei’s future political standing amid calls for accountability.
Argentina’s President Javier Milei is under scrutiny due to allegations of fraud related to the cryptocurrency $LIBRA. A federal judge, Maria Servini, has been assigned to investigate Milei’s involvement and whether any illegal actions occurred. These allegations arise from the rapid fluctuations in $LIBRA’s value, which resulted in significant losses for investors.
The controversy intensified following the launch of $LIBRA, which Milei promoted on social media, describing it as a means to stimulate economic activity by funding startups. Initially, the cryptocurrency reached a market capitalization of $4 billion, only to descend quickly, leading many to suspect a scam. The president promptly deleted his promotional post amid the plummeting value.
Critics have suggested this situation resembles a “rug pull” scam, where initial investors inflate the value before cashing out, leaving subsequent investors with worthless assets. As Milei’s stance shifted, his office issued statements disavowing direct involvement with the cryptocurrency.
An anonymous government source claimed that Milei himself was a victim of the $LIBRA fallout, asserting his longstanding role in promoting various business initiatives. Meanwhile, some analysts argue that the website linked to $LIBRA incorporated Milei’s political slogan, raising further allegations against him.
Lawyer Jonatan Baldiviezo, representing plaintiffs in the case, stated, “Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential.” An NGO also alleged that $LIBRA’s collapse adversely impacted over 40,000 investors, resulting in substantial financial losses.
Hayden Davis, a cryptocurrency developer, pointed toward Milei’s withdrawal of support as a trigger for the rapid devaluation of $LIBRA. While experts express doubt regarding the likelihood of impeachment, they caution that the scandal could diminish Milei’s economic standing ahead of the 2025 elections.
Milei has attributed the uproar to political opponents, reiterating his commitment to combat them decisively. He remains defiant in the wake of these escalating allegations.
The unfolding situation surrounding Javier Milei and the $LIBRA cryptocurrency raises serious concerns about potential fraud. As investigations proceed, the implications for Milei’s political future and economic credibility could be significant. Critics argue the scandal reflects broader issues in cryptocurrency regulation and investor protection.
Original Source: www.aljazeera.com
