President Javier Milei on Monday denied promoting a cryptocurrency that crashed, brushing aside claims of wrongdoing as prosecutors begin an investigation into the scandal.<\/p>\n
The \u2018$LIBRA\u2019 cryptocurrency crashed last Friday just hours after Milei posted on social media about it, losing investors billions of dollars and prompting a flood of complaints.<\/p>\n
\u00abI did not promote it, I spread it,\u00bb Milei told broadcaster TN, adding that it \u00abis a problem between private parties because the State does not play a role here.\u00bb<\/p>\n
\u00abI acted in good faith,\u00bb he said.<\/p>\n
This \u00abis a problem between private parties because the state plays no role here,\u00bb he added.<\/p>\n
\u00abSomeone who comes to me and proposes the creation of an instrument to finance projects is interesting to me. For wanting to give a hand to Argentines, I got slapped in the face,\u00bb he claimed.<\/p>\n
Federal prosecutors will examine whether Milei engaged in fraud or criminal association or was in breach of his duties when he praised the \u2018$LIBRA\u2019 cryptocurrency on social media last Friday evening.<\/p>\n
Federal Court No. 1, presided over by Judge Mar\u00eda Servini, was assigned the investigation by lottery on Monday. Her court will examine whether Milei engaged in fraud or criminal association or was in breach of his duties when he praised the so-called \u201cmemecoin.\u201d<\/p>\n
\u00abThe world wants to invest in Argentina. $LIBRA,\u00bb read the President’s initial message, referring to the token, a digital asset based on blockchain technology with no backing in real money.<\/p>\n
The currency’s value soared then crashed, and Milei deleted his blessing hours later, saying he had made a mistake.<\/p>\n
Economists, crypto specialists and opposition political figures criticised the self-declared \u00abanarcho-capitalist\u00bb president, an economist by training, and said the digital asset could be a fraud or a Ponzi scheme.<\/p>\n
Industry observers said the operation was likely a \u00abrug pull\u00bb \u2013 a scam where developers unveil a crypto token, attract investors, then quickly cash out.<\/p>\n
Rights NGO Observatorio de Derecho la Ciudad, which filed one of several complainants, alleges Milei formed part of a \u00abcriminal organisation that organised a fraud with the $LIBRA cryptocurrency that simultaneously affected more than 40,000 people with losses of more than US$4 billion.\u00bb<\/p>\n
The Kobeissi Letter publication, which provides analysis on global capital markets, said on X Friday that within minutes of its launch, \u00abmultiple large holders began liquidating MILLIONS of USD worth of $LIBRA.\u00bb<\/p>\n
\u00abThis included gains of +$4 million or more as $LIBRA rose to $4.6 billion in market [capitalisation],\u00bb it reported.<\/p>\n
The publication noted that some 80 percent of the token was concentrated in the hands of very few holders before Milei\u2019s endorsement.<\/p>\n
After the president’s post, the token\u2019s value skyrocketed from fractions of a dollar to a peak of $4.978, allowing the original holders to cash out with millions in profits before the asset’s value plummeted.<\/p>\n
Milei later said he did not know \u00abthe details of the project and after learning about it, I decided not to continue promoting it.\u00bb\u00a0<\/p>\n
On Monday, Milei said he had \u00abnothing to hide\u00bb from an investigation.\u00a0<\/p>\n He said that those who carried out the transactions, including \u00aba lot of bots,\u00bb \u00a0were people who \u00abknew very well what the risk was.\u00bb\u00a0<\/p>\n Deputies from the opposition Uni\u00f3n por la Patria (Peronist) coalition have announced they will institute impeachment proceedings against Milei.\u00a0<\/p>\n Former president Cristina Fern\u00e1ndez Kirchner branded Milei a \u00abcrypto-scammer.\u00bb<\/p>\n Other parties are seeking the creation of a special parliamentary commission to question Milei. Some have called on the President to give testimony before Congress.<\/p>\n The Buenos Aires Stock Exchange closed 5.58 percent down Monday from Friday’s closing levels, with drops of up to eight percent for some stocks.<\/p>\n Argentina\u2019s Presidency on Saturday announced that \u2013 \u201cin light of the events\u201d \u2013 the national Anti-Corruption Office will be tasked with determining \u201cwhether any improper conduct was committed by a member of the national government, including the president himself.\u201d<\/p>\n It would also create a task force to carry out an \u00aburgent investigation into the launch of the cryptocurrency $LIBRA, and all companies or individuals involved.\u00bb<\/p>\n The prosecutor’s office will also look into Julian Peh \u2013 CEO and co-founder of Kip Network and KIP Protocol, companies that participated in the creation of $LIBRA \u2013 as well as Lower House Speaker Martin Menem, who had reposted Milei’s original endorsement.<\/p>\n Milei said he had learned an \u00abinteresting lesson\u00bb from the episode, and that he would have to construct \u201cwalls\u201d and \u00abraise the filters\u00bb around him.\u00a0<\/p>\n \u00abThe most interesting lesson that I have to learn is that I assumed the Presidency and continued to be Javier Milei as always, and those who know me know that I was accessed in the same way as when I was President,\u00bb he said, reiterating his line that he only shared details about the token and did not promote it.<\/p>\n In its judicial filing, Observatorio de Derecho la Ciudad noted the involvement of La Libertad Avanza party members in the token\u2019s promotion.<\/p>\n The plaintiffs argued that \u00abMilei\u2019s promotion of $LIBRA was neither random nor na\u00efve\u2019,\u00bb highlighting that only \u00abthree minutes\u00bb passed between the token\u2019s launch and the President\u2019s tweet.<\/p>\n
Beyond the formal complaint, hundreds of additional reports have been submitted via digital channels, according to judicial sources cited by local media outlets.<\/p>\n \u00abWhat happened is what\u2019s known in financial markets as a ‘rug pull,'\u00bb said prominent digital fraud whistleblower Javier Smaldone.<\/p>\n \u00abA cryptocurrency is created \u2014 this can also happen with stocks \u2014 it is given some initial liquidity so that it has some value, and then a promotional campaign begins to attract people,\u00bb said the IT specialist.<\/p>\n He detailed that \u00abas more people buy in, the asset\u2019s value increases \u2026 until, at some point, those controlling the liquidity withdraw the money, and the whole thing collapses.\u00bb<\/p>\n Milei dismissed criticism on Monday, stating it came from traditional politicians who are \u201cnervous\u201d as they are polling badly.<\/p>\n He claimed only 5,000 people had truly lost money in the events of last Friday, arguing they were \u201cspecialised\u201d investors who knew what they were getting themselves into.<\/p>\n \u00abThey knew very well what they were getting into, they are volatility traders,\u00bb he said, adding: \u00abIf you go to the casino and lose money, you knew it could happen.\u201d<\/p>\n Asked for his take, political scientist Carlos Germano said that the case \u00abaffects his [Milei’s] credibility,\u00bb though his efforts to combat inflation \u2013 at its lowest in four years \u2013 remain popular with the electorate.<\/p>\n Milei continued with his duties Monday, hosting Republican US Senator Steve Daines in Buenos Aires. The President is due to visit the United States later this week.<\/p>\n
\t\t\t\t\t\t\t\t<\/p>\n
\n\u2018Nothing to hide\u2019<\/strong><\/p>\n
\n\u2018Rug pull\u2019<\/strong><\/p>\n
\n\u2013 TIMES\/AFP\/PERFIL<\/p>\n