Fraud Charges Against President Javier Milei over Cryptocurrency Promotion
In a surprising turn of events, Argentine President Javier Milei is facing legal troubles due to his recent promotion of a cryptocurrency on social media. Lawyers have filed fraud charges against him in a criminal court, claiming that his actions may have involved fraudulent activities.
The Controversial Cryptocurrency
On Friday, President Milei took to social media platform X (formerly Twitter) to promote a cryptocurrency called $LIBRA. He emphasized that this digital currency was intended to foster economic growth by funding small businesses and startups. However, the excitement around the currency was short-lived. Just a few hours after his post, Milei deleted it, leading to a sharp decline in the currency’s value. Financial reports indicate that this sudden drop resulted in millions of dollars in losses for investors who had jumped on the opportunity.
Features of $LIBRA
- Objective: Designed to encourage economic growth by providing funds for small businesses and startups.
- Access: Users could acquire $LIBRA through a website linked in Milei’s post, named vivalalibertadproject.com.
- Development Team: The cryptocurrency was developed by KIP Protocol, led by Hayden Davis.
Legal Actions and Reactions
Following the collapse of $LIBRA, lawyers Jonatan Baldiviezo and Marcos Zelaya, along with other plaintiffs, rushed to file fraud charges against Milei. They argue that his actions could be characterized as a "rug pull"—a term in the cryptocurrency world that describes a situation where developers lure investors with an irresistible token and then abandon it, making investments worthless. They believe that Milei’s involvement in promoting the cryptocurrency constitutes an illicit association for committing fraud.
The Argentine criminal justice system is set to assign a judge to the case or hand it over to a prosecutor for further investigation shortly.
Key Points Raised by Plaintiffs
- Illicit Association: The plaintiffs assert that Milei’s promotion involved a conspiracy to commit fraud.
- Public Ethics Violation: Baldiviezo emphasized that Milei may have breached Argentina’s Public Ethics Law.
President Milei’s Defense
In light of the allegations, Milei’s office quickly issued a statement clarifying his position. They emphasized that the President did not partake in the creation of the cryptocurrency and that he deleted the post to avoid further speculation following the negative public response. After deleting the tweet, Milei claimed he was unaware of the full details of the cryptocurrency project. He accused his political opponents of attempting to exploit the situation for their gain.
Further Actions from the Administration
- The President’s office announced that the country’s Anti-Corruption Office, which functions under the Executive Branch, would start investigating the matter.
- They acknowledged that Milei had previously met with representatives of KIP Protocol, signaling a connection that might require further scrutiny.
The Developer’s Response
Hayden Davis, a representative from KIP Protocol, took to social media to express his disappointment with President Milei’s sudden withdrawal of support for the cryptocurrency. In a video, he claimed that despite previous agreements, Milei’s team changed their stance abruptly, leading to the token’s downfall.
Conclusion
The situation surrounding $LIBRA and President Javier Milei has raised questions about the intersection of cryptocurrency regulation and political ethics in Argentina. As legal proceedings unfold, it remains to be seen how this controversy will impact Milei’s administration and the broader landscape of cryptocurrency investment in the country. This episode serves as a reminder of the volatile nature of cryptocurrencies and the potential risks involved for investors, especially when high-profile figures enter the fray.
