In a dramatic turn of events, lawmakers in Argentina’s Chamber of Deputies have voted to initiate an investigation into President Javier Milei’s alleged involvement in the Libra (LIBRA) cryptocurrency scandal. This decision, made with a vote of 128 to 93, accompanied by seven abstentions, reflects mounting concerns over Milei’s use of his political influence to promote the controversial memecoin.
The investigation follows reports that President Milei leveraged his substantial social media following—3.8 million on various platforms—to endorse the LIBRA token. His promotions seemingly propelled the token’s price to $5, resulting in a staggering market cap of approximately $4 billion. However, critics have swiftly labeled the initiative a rug-pull scam, suggesting that Milei lured unsuspecting investors into a precarious financial trap.
Faced with grave accusations, Milei is being scrutinized by prominent legal figures including lawyer Jonatan Baldiviezo and economist Claudio Lozano, the former head of Argentina’s central bank. These individuals argue that Milei’s promotion was not merely coincidental but part of an illicit scheme that led to substantial financial losses for investors. Over 40,000 people reportedly lost more than $4 billion, with February blockchain data indicating that out of 15,430 wallets, over 86% incurred losses totaling around $251 million.
The accusations culminated in a lawsuit against the president, framing his promotional activities as fraudulent. The Observatorio del Derecho a la Ciudad, a non-governmental organization, expressed its concern by filing a formal complaint regarding the president’s role in this crypto debacle.
Despite these developments, Milei has publicly denied any wrongdoing, claiming, “I did not promote that. What I did, I spread the word.” This stark contradiction raises questions about his credibility and the legitimacy of his statements amidst mounting evidence.
Furthermore, revelations have surfaced regarding a reported message between a Libra creator and an investment executive, suggesting potential collusion involving Payoffs for Milei’s sister for promoting LIBRA on social media. This allegation deepens the complexity of the case, portraying this scandal not just as a financial misstep but potentially a family affair fraught with ethical improprieties.
The unfolding scenario poses significant implications for Milei’s presidency, as the investigation could lead to further political fallout and perhaps even calls for impeachment. As the country watches closely, the Libra incident emphasizes the risks connected to cryptocurrency promotions and the importance of regulatory oversight in this burgeoning market.
