President Javier Milei spoke out for the first time about a cryptocurrency scandal that\u2019s dented his reputation in Argentina, triggering lawsuits and even calls for his impeachment.<\/p>\n
Milei confirmed he met with the people who proposed and launched a so-called memecoin called Libra. He said he didn\u2019t post about it on social media with the intent of persuading people to buy it, but rather to raise awareness about an effort to support Argentine businesses using crypto.<\/p>\n
\u201cI\u2019m not an expert. My specialty is economic growth, with and without money,\u201d Milei said Monday night in an interview with local television station Todo Noticias. \u201cAs a guy who\u2019s a super technology enthusiast seeing the possibility of a tool to finance entrepreneurs\u2019 projects, I spread the word.\u201d<\/p>\n
Milei\u2019s problems started Friday night when he directed his millions of social media followers to the Libra token, sending its value soaring. Within hours, the coin\u2019s value more than quadrupled, making the total outstanding amount worth US$4 billion. It then crashed, handing speculators large losses.\u00a0<\/p>\n
The government has launched an internal investigation and Milei\u2019s opponents are seizing on the worst crisis he\u2019s faced since taking power more than a year ago. The president conceded that his openness to meeting with anyone offering up solutions to his country\u2019s perennial economic woes may need to change. \u00a0<\/p>\n
\u201cThe most important lesson is that I can\u2019t keep being the same Javier Milei as always,\u201d he said. \u201cSadly I have to put up more filters so that it\u2019s not as easy to reach me.\u201d<\/p>\n
While Argentines demanded answers, the presidential palace initially stayed silent. Economy Minister Luis Caputo was the first member of Cabinet to speak publicly earlier Monday evening, saying the incident was an unforced error about a niche topic and that Milei had no ill intentions and had committed no crimes.<\/p>\n
\u201cCryptocurrencies are a tiny, infinitesimal world. It\u2019s a world of specialists that\u2019s very hard to understand,\u201d Caputo said. \u201cI don\u2019t understand crypto either, and it\u2019s been explained to me 800,000 times.\u201d<\/p>\n
Milei\u2019s economy minister tried to reassure the public that the incident would have no fall-out for markets and said that no overseas investors had texted him to inquire about the matter. Despite having spent time Monday in the presidential palace, Caputo said he hadn\u2019t discussed the issue with the President, or even seen him. \u00a0<\/p>\n
US bond and equities markets were closed Monday. Still, investors in Buenos Aires dumped shares in some of the country\u2019s largest local companies. The benchmark S&P Merval Index saw its biggest one-day drop since July, falling some 5.6 percent on Monday.<\/p>\n
On social media, the government tried to shift attention to January\u2019s budget surplus. Milei hosted Montana Republican Senator Steve Daines on Monday, and took a photo in his office with a chainsaw to represent his efforts to cut government spending. On X, he reshared a post from US President Donald Trump with a Milei quote and a photo.<\/p>\n
While the political and market repercussions remain unclear, the episode has been embarrassing for the libertarian, who has thus far enjoyed popular support even as he slashed government spending. His main victory has been getting inflation down to its lowest level in nearly five years last month.<\/p>\n
Some Milei allies told local media Monday that the president had been scammed by those who launched the coin, and said he hadn\u2019t been familiar with the details. Meanwhile, Hayden Davis, the chief executive officer of Kelsier Ventures, which helped launch the coin, said he was still seeking an explanation from the government.<\/p>\n
Speaking in a streamed interview earlier Monday with Barstool Sports founder Dave Portnoy, Davis said the launch had been orchestrated alongside Milei and members of his team, whom he didn\u2019t name. Portnoy, who himself suffered steep losses and dubbed the token \u201cthe biggest rug pull of all time,\u201d said he had been refunded for his losses by Davis.<\/p>\n
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\u2018Not Corrupt\u2019<\/strong><\/p>\n Davis said he believed it wasn\u2019t Milei himself, but people close to him, who had been responsible for the debacle. He didn\u2019t name any of them, however, and claimed to fear for his life.<\/p>\n \u201cI firmly believe he\u2019s not corrupt,\u201d he added, in the president\u2019s defence. \u201cI don\u2019t think Milei even fully knows what\u2019s going on.\u201d<\/p>\n According to Max Burwick, managing partner at Burwick Law in New York, hundreds of clients lost large sums due to Libra\u2019s price swings. The firm is \u201chelping them explore potential avenues for financial recovery,\u201d he said, in reply to written questions.\u00a0<\/p>\n Moyano & Asociados, a local law firm, said it filed a complaint with the US Securities and Exchange Commission.<\/p>\n An Argentine judge was assigned to investigate more than 100 legal cases that were filed against Milei since the incident. Opposition leaders called for an impeachment trial that\u2019s unlikely to prosper since it would require a two-thirds majority in Congress.\u00a0<\/p>\n Milei, meanwhile, still plans to fly to Washington this Wednesday night in hopes of meeting Trump. The Argentine leader wants to secure the US president\u2019s support for his country to receive more money from the International Monetary Fund in a new programme that\u2019s still under negotiation, as well as possible exemptions from Trump\u2019s tariffs.\u00a0<\/p>\n by Manuela Tobias & Ignacio Olivera Doll, Bloomberg<\/p>\n \t\t\t\t\t\t\t\t<\/p>\nrelated news<\/h6>\n<\/p>\n<\/section>\n