President Javier Milei is under investigation by federal prosecutors for endorsing the $LIBRA cryptocurrency, which subsequently collapsed and caused over $4 billion in investor losses. The inquiry will seek to determine if Milei acted improperly or engaged in fraudulent behavior. Political opposition has moved to initiate impeachment proceedings against him amid concerns of misconduct surrounding the cryptocurrency’s promotion.
Federal prosecutors in Argentina are launching an investigation into President Javier Milei’s promotion of the cryptocurrency $LIBRA, which has reportedly led to substantial investor losses exceeding $4 billion. Assigned to Federal Court No. 1 under Judge María Servini, the inquiry will determine if Milei engaged in fraud or breached any duties by endorsing the cryptocurrency on social media, prior to its dramatic collapse in value.
The $LIBRA cryptocurrency, described as a digital asset without real monetary backing, was initially hailed by Milei as a positive investment for Argentina. Shortly after his endorsement, the asset’s value inflated significantly, only to tumble, prompting him to delete his endorsement hours later and acknowledge a mistake. Critics, including economists and political opponents, have questioned the legitimacy of $LIBRA, suggesting it may have been a fraud scheme.
A legal complaint filed by rights NGO Observatorio de Derecho la Ciudad accuses Milei of being part of a criminal organization responsible for the cryptocurrency’s promotion, which adversely impacted approximately 40,000 individuals. Industry analysts noted that after the cryptocurrency’s launch, a concentrated group of holders liquidated their investments significantly, resulting in substantial profits before its eventual devaluation.
The political response has been swift; opposition deputies from the Unión por la Patria coalition are initiating impeachment proceedings against Milei. Former president Cristina Fernández Kirchner has labeled him a “crypto-scammer,” while other parties demand a parliamentary commission to investigate his actions further. Argentina’s Anti-Corruption Office is also conducting a parallel inquiry into any misconduct by government officials, including Milei.
Beyond the official complaint, numerous additional reports and allegations have surfaced, indicating widespread concern over the cryptocurrency’s promotion. Analysts have described the situation as a typical ‘rug pull,’ where those controlling the asset profit extensively before its collapse, with one expert estimating around $107 million may have already been extracted from the scheme.
Overall, the fallout from Milei’s endorsement of $LIBRA has ignited a significant political and legal debate, reflecting deep-seated tensions regarding cryptocurrency in Argentina and potential abuse by those in positions of power. The investigation will likely demand accountability from Milei and other involved parties as implications of fraud unfold in the coming weeks.
In summary, the promotion of $LIBRA by President Javier Milei raises serious ethical and legal concerns, with investigations underway to assess potential misconduct. The significant financial losses experienced by investors, alongside allegations of fraud, have prompted a political backlash, leading to impeachment efforts and calls for greater oversight. The situation serves as a cautionary tale regarding the risks associated with cryptocurrency investments and the responsibilities of public officials.
Original Source: www.batimes.com.ar
