Argentina to Investigate President Milei’s Connection to Controversial Cryptocurrency $LIBRA
A federal judge in Argentina has been assigned to lead an investigation into President Javier Milei’s involvement with the cryptocurrency $LIBRA, following accusations of potential fraud and market manipulation, Al Jazeera reports.
Judge Maria Servini was randomly selected on Monday to head the probe, which will examine whether Milei violated any laws in his promotion of the digital currency.
The controversy surrounding $LIBRA exploded on Friday when the cryptocurrency launched and Milei publicly endorsed it on X, stating it was intended to stimulate “economic growth by funding small businesses and startups.” This endorsement contributed to a rapid surge in market capitalization, briefly reaching $4 billion. However, the cryptocurrency’s value quickly plummeted, leading to accusations of a “rug pull” scam, a scheme where initial investors artificially inflate the value of an asset before withdrawing their investments, leaving others with worthless holdings.
As $LIBRA’s value cratered, Milei deleted his initial post promoting the cryptocurrency. Critics have questioned whether this constituted a “rug pull,” with the architect of the scam potentially profiting from the inflated value while leaving investors with losses.
By Saturday, Milei’s office issued a statement attempting to distance the president from $LIBRA, asserting he was not involved in its development. The statement further clarified that Milei routinely promotes various business ventures, including KIP Protocol, the developer of $LIBRA, as part of his broader free-market agenda. One anonymous government official, speaking to Reuters, suggested that Milei himself might be a victim of the cryptocurrency’s volatile trajectory.
However, critics remain unconvinced, pointing to the cryptocurrency’s website, vivalalibertadproject.com, which incorporates Milei’s signature slogan, “Long Live Liberty!” This connection has fueled accusations that Milei was an active participant in the cryptocurrency scheme.
In response to the escalating controversy, Milei took to social media to blame his political opponents for orchestrating the uproar.
The outcome of Judge Servini’s investigation could have significant political ramifications for President Milei, with some opposition politicians suggesting the possibility of impeachment proceedings depending on the findings. The investigation is expected to thoroughly examine Milei’s role in promoting $LIBRA, the potential for financial wrongdoing, and the implications for investors who suffered losses during the cryptocurrency’s sharp decline.
