Argentine President Javier Milei is under intense scrutiny following his promotion of a cryptocurrency on social media, which has led to calls for his impeachment and legal action accusing him of fraud.
On Friday, Milei posted a tweet on X, formerly Twitter, about a new cryptocurrency called $LIBRA, which he claimed would assist in funding small businesses and start-ups across Argentina. The president shared a link that allowed users to purchase the coin, which resulted in a sharp surge in its price. However, the excitement was short-lived, as the value of the cryptocurrency plummeted shortly after Milei deleted the post, leaving many investors with significant losses.
In the wake of the incident, several opposition members of Congress have announced their intention to initiate impeachment proceedings against the president. Legal experts also moved quickly, filing complaints of fraud in Argentina’s criminal courts as they scrutinise the actions of Milei and those involved in the cryptocurrency’s launch.
Online accusations have emerged, with many alleging that Milei’s actions resemble a “rug pull” – a fraudulent tactic often seen in the world of cryptocurrencies, where promoters lure in buyers, only to abandon the project and disappear with the funds. Critics have pointed out that the link used for purchasing the $LIBRA coin contained a phrase commonly used by Milei in his speeches, raising further suspicions about his involvement.
In response to the growing controversy, Argentina’s presidential office issued a statement on Saturday, explaining that the post had been deleted to prevent “speculation” following public reaction to the cryptocurrency launch. The statement went on to clarify that Milei was not directly involved in the development of $LIBRA, and assured the public that the government’s Anti-Corruption Office would investigate the matter thoroughly. The investigation would seek to determine whether any illegal activities had occurred, including the potential involvement of the president himself.
Jonatan Baldiviezo, one of the plaintiffs who filed the legal complaint against Milei, spoke to the Associated Press, asserting that “the crime of fraud was committed, in which the president’s actions were essential.” He emphasised the severity of the situation and called for accountability, highlighting the role Milei played in promoting the cryptocurrency to the public.
Milei’s political adversaries have seized the opportunity to launch scathing attacks. Former President Cristina Fernández de Kirchner, now a vocal critic of Milei, took to social media to brand him a “crypto scammer.” Her post, which reached an audience of 6.4 million people, described Milei’s actions as an attempt to mislead the public for personal gain.
The controversy surrounding the $LIBRA coin has also garnered attention from the main opposition coalition in Argentina, which has labelled the situation as an “unprecedented scandal.” In a statement, the coalition announced plans to formally request the impeachment of President Milei, accusing him of gross misconduct and failure to uphold his responsibilities as head of state.
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The issue has raised questions about the regulation and oversight of cryptocurrency projects in Argentina, particularly with regard to the involvement of high-ranking government officials in promoting such ventures. Milei, a libertarian economist who won the presidency on promises of economic reform and deregulation, has previously voiced strong support for cryptocurrencies, advocating for their potential to revolutionise Argentina’s financial landscape. However, the $LIBRA incident has cast a shadow over his administration’s credibility and raised concerns about the ethical implications of such endorsements.
As the legal proceedings unfold and impeachment discussions intensify, the future of President Milei’s presidency remains uncertain. The controversy has already sparked widespread debate about the relationship between politics and emerging technologies, as well as the potential risks involved in promoting unregulated financial products to the public.
While the Argentine public awaits further developments, the case serves as a stark reminder of the volatility and unpredictability of the cryptocurrency market, and the responsibility that public figures hold when engaging with such speculative ventures. For now, the political and legal fallout from the $LIBRA promotion continues to unfold, with many watching closely to see how the situation will impact Milei’s political future.
