Argentina’s Chief Prosecutor has frozen $100 million in crypto related to the LIBRA scandal, following allegations of a pump-and-dump scheme. President Milei, who promoted LIBRA, faces fraud charges as authorities investigate financial records. Reports vary on the number of affected investors, with Milei defending his actions, stating few Argentinians were harmed.
Argentina’s Chief Prosecutor, Eduardo Taiano, has ordered the freezing of nearly $100 million in cryptocurrency linked to the controversial sale of LIBRA coins, as reported by Clarín. The LIBRA tokens had initially surged to a significant market cap of $4.5 billion before experiencing a drastic collapse last February, and allegations have arisen regarding a potential pump-and-dump scheme surrounding its promotion.
President Javier Milei had actively supported LIBRA on the social media platform X, touting its potential to assist small businesses; however, he later deleted this promotional tweet following the token’s collapse. Currently, Milei faces fraud charges, and authorities are scrutinizing the financial records of the token as well as his deleted posts. Reports indicate that prior to the crash, a select group of wallets, which held the majority of LIBRA, cashed out significant amounts, with Kelsier Ventures CEO Hayden Davis acknowledging a $100 million profit from the venture, according to Decrypt.
While claims suggest that approximately 40,000 investors were affected by LIBRA’s downfall, Milei contests this figure, asserting that merely 5,000 individuals were implicated. Law enforcement, regulatory bodies, and international exchanges have been called upon to work collaboratively in freezing the implicated assets.
In his defense, President Milei maintains that he promoted LIBRA in good faith, believing it would be advantageous for Argentine entrepreneurs. He has minimized the fallout on local investors, stating, “Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most.” This instance follows a previous controversy in which he was sued in 2022 for endorsing CoinX, a platform that falsely claimed to offer enormous returns.
The freezing of nearly $100 million in cryptocurrency linked to the LIBRA scandal underscores significant financial misconduct allegations in Argentina. With President Milei’s promotions and subsequent legal challenges, the case reveals the complexities and risks of cryptocurrency investments. As investigatory efforts continue, the outcome may influence regulatory approaches to cryptocurrencies in the nation moving forward.
Original Source: www.binance.com
