President Javier Milei of Argentina admitted to promoting the cryptocurrency $LIBRA, which crashed shortly after its launch. An urgent investigation has been initiated following allegations of fraud. Critics, including opposition figures, have called for formal inquiries into the matter, while Milei asserts no prior knowledge or intentions of wrongdoing.
Argentina’s President Javier Milei acknowledged a misstep regarding his promotion of the cryptocurrency $LIBRA, which subsequently experienced a severe decline in value. His office has initiated an immediate investigation into the matter after the cryptocurrency’s value soared before plummeting. The promotion aimed to support economic growth by funding small businesses and entrepreneurs, a statement Milei replaced later upon discovering further details about the project.
On social media, Milei initially claimed, “The world wants to invest in Argentina. $LIBRA” along with a link to the cryptocurrency’s website. Not long after, he retracted his support, asserting, “I did not know the details of the project and after learning about it, I decided not to continue promoting it.” He emphasized he had no ties to the private entity behind the cryptocurrency.
Criticism of Milei followed from economists, crypto experts, and opposition leaders, who labeled the digital asset as potentially fraudulent or akin to a Ponzi scheme. It was reported that the operation closely resembled a “rug pull,” where a cryptocurrency is launched, attracting investors, only for developers to withdraw funds abruptly. The Kobeissi Letter noted substantial withdrawals by major holders within minutes of the token’s launch.
In reaction to the incident, the Argentine presidency stated it will involve the Anti-Corruption Office to investigate any unethical conduct linked to the national government, including any involvement from President Milei. Additionally, a task force will be established to expedite inquiries regarding the $LIBRA launch and its affiliates. Milei’s office reassured that he had no part in the cryptocurrency’s development.
Javier Smaldone, a computer expert known for exposing fraud, condemned the operation as a “global scam,” estimating profits around $107 million. Former president Cristina Kirchner directly labeled Milei a “crypto-scammer,” while other political figures called for a special inquiry into the events surrounding the cryptocurrency’s promotion. Despite these accusations, Francisco Onato, Milei’s lawyer, argued his client’s actions were merely supportive and did not breach any laws due to a lack of intent.
The situation surrounding President Javier Milei’s promotion of the $LIBRA cryptocurrency highlights significant concerns regarding potential fraud and the integrity of cryptocurrency ventures. Following a rapid rise and fall in value, an urgent investigation is being conducted to determine any wrongdoing by Milei or his associates. Responses from the political community underscore the seriousness of the allegations, while Milei distances himself from the execution of the project.
Original Source: www.france24.com
