Argentine President Javier Milei Denies Promoting Scam Cryptocurrency
Buenos Aires, Argentina – Argentine President Javier Milei has vehemently denied promoting a cryptocurrency that subsequently crashed, leaving thousands of investors with losses of over $4 billion.
Milei’s Explanation
In an interview with TN news channel, Milei asserted that he merely "shared" information about the digital currency without endorsing it. He described himself as a "fanatical techno-optimist" who sought to highlight a project with the potential to fund small tech businesses.
Milei dismissed the collapse of the cryptocurrency as a matter between private individuals, claiming he had "nothing to hide" and welcomed an investigation. He emphasized that the operators involved in the transactions were "traders" who understood the speculative nature of the investment.
Multiple Complaints and Investigations
Despite Milei’s denials, he faces a barrage of complaints and investigations. The Observatorio del Derecho de la Ciudad, a non-governmental organization, has filed a complaint alleging that the $LIBRA cryptocurrency operations affected over 40,000 people with losses exceeding $4 billion.
An Argentine federal judge and prosecutor have been appointed to centralize a wave of over 100 complaints, according to media reports. Additionally, a law firm representing around 40 investors has submitted a request for investigation to the U.S. Department of Justice, alleging a massive "rug pull" fraud that also impacted American citizens.
Presidential Statement and Investigation
The Argentine presidency has announced an investigation into the launch of the $LIBRA cryptocurrency and any entities or individuals involved. While stating that Milei had no involvement in the development of the asset, the presidency also indicated that the Anti-Corruption Bureau will examine potential inappropriate conduct within the government.
Political Implications
The scandal has sparked calls for impeachment proceedings against Milei, but analysts deem this highly unlikely. The launch of such a procedure would require a two-thirds majority in the lower house of parliament. The main opposition Peronist party (center-left) has accused Milei of a "crypto-scam" but has not yet supported impeachment.
Other parties have suggested a parliamentary commission of inquiry. Politically, the impact on Milei’s image remains uncertain, although the incident has damaged his credibility to some extent.
Market Impact and Upcoming Trip
The $LIBRA scandal has also affected the Argentine stock market, with the Buenos Aires Stock Exchange closing down 5.58% on Monday.
Amidst the controversy, Milei is scheduled to travel to the United States on Wednesday evening for the Conservative Political Action Conference (CPAC) in Washington, D.C., from February 19-22. However, the exact nature of his agenda remains unclear at this time.
