The so-called \u2018cryptogate\u2019 scandal has rocked Argentina\u2019s political landscape. It began when President Javier Milei \u2013 a self-proclaimed \u201canarcho-capitalist\u201d and economist who prides himself on having curbed Argentina\u2019s endemic inflation \u2013promoted a cryptocurrency \u201cin good faith\u201d that collapsed within hours, causing multimillion-dollar losses.<\/p>\n
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What happened?<\/strong><\/h4>\nOn Friday evening, Milei promoted (or \u201cshared,\u201d according to his version of events) the \u2018$LIBRA\u2019 memecoin on social media.\u00a0<\/p>\n
\u201cThis private project will be dedicated to encouraging the growth of Argentina\u2019s economy,\u201d he wrote.<\/p>\n
Launched that same evening, the cryptocurrency surged to nearly US$5 following Milei\u2019s tweet but then plummeted by 90 percent in value within two hours.\u00a0<\/p>\n
Milei subsequently deleted his original post and stated that he \u201cwas not aware of the details of the project.\u201d<\/p>\n
During that brief window, the currency saw transactions worth more than US$4.5 billion, according to Javier Smaldone, an IT specialist and well-known digital influencer who exposes pyramid schemes.<\/p>\n
The exact amount lost by investors \u201cis subjective and difficult to estimate,\u201d he told AFP. Current estimates put the figure at US$250 million.<\/p>\n
Dozens of legal complaints have been filed against Milei and the other parties involved, both in Argentina and the United States.\u00a0<\/p>\n
Meanwhile, opposition lawmakers have announced they will pursue impeachment proceedings over the alleged \u201ccrypto-fraud.\u201d<\/p>\n
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What are the political consequences?<\/strong><\/h4>\nMembers of the opposition Uni\u00f3n por la Patria (Peronist) coalition have declared their intention to push for Milei\u2019s impeachment, though they lack the necessary votes to make it happen.<\/p>\n
\u201cOn a scale of 0 to 10, this possibility is zero,\u201d said political analyst Carlos Germano.<\/p>\n
Others are calling for the creation of an investigative committee, a more feasible initiative, while a third proposal from the left seeks to summon the president for questioning in Congress. This would force him to answer questions from lawmakesr. Milei has previously described Congress as a \u201cnest of rats.\u201d<\/p>\n
The PRO party, a Milei ally led by former president Mauricio Macri (2015\u20132019), described the case as \u201cvery serious\u201d and said it had \u201cdamaged the country\u2019s credibility.\u201d\u00a0<\/p>\n
However, they declined to support impeachment proceedings \u201cat this stage.\u201d<\/p>\n
\u201cClearly, the president has found himself at the centre of a scam that has affected many people, and that warrants a very serious investigation,\u201d Macri stated.<\/p>\n
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What legal risks does Milei face?<\/strong><\/h4>\nImpeaching a sitting president requires a two-thirds majority in both chambers of Congress.<\/p>\n
Adolfo Su\u00e1rez Erdaire, a lawyer specialising in digital fraud who is investigating the case, told AFP that even if impeachment proceedings were successful,\u201d\u2018the only political penalty the President would face would be removal from office and disqualification from holding public office in the future.\u201d<\/p>\n
However, once his term ends, he could face ordinary criminal charges, with potential sentences of up to six years in prison, as well as civil lawsuits from affected investors seeking damages.<\/p>\n
\u201cThere is an ongoing legal risk because judicial cases always leave a trail,\u201d he explained.<\/p>\n
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Who else is involved?<\/strong><\/h4>\nAlongside Milei, the case also involves US businessman Hayden Mark Davis, the CEO of Kelsier Ventures and one of the creators of $LIBRA; Singaporean entrepreneur Julian Peh, who launched the currency via the website \u2018vivalalibertadproject.com\u2019; and Argentine citizen Mauricio Novelli, founder of a tech forum that drew the duo to Buenos Aires last October.\u00a0<\/p>\n
Milei himself revealed on X that he had a \u201cvery interesting\u201d meeting with Davis at the Casa Rosada on January 30.\u00a0<\/p>\n
\u201cHe advised me on the impact and applications of blockchain technology and artificial intelligence in the country,\u201d he wrote in a post on social media.<\/p>\n
Novelli is also the co-founder of N&W Professional Traders, a financial training company where Milei taught classes before entering politics.<\/p>\n
\u201cI\u2019ve known him for years,\u201d the President said.<\/p>\n
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What has been Milei\u2019s response?<\/strong><\/h4>\nOn Monday night, the TN news channel aired an interview with Milei, which had been recorded earlier that afternoon.\u00a0<\/p>\n
\u201cI didn\u2019t promote it, I shared it,\u201d Milei insisted during questioning, claiming that his endorsement of $LIBRA was done \u201cin good faith.\u201d<\/p>\n
\u201cBy trying to give Argentines a helping hand, I got a slap in the face,\u201d the President remarked, arguing that those who invest in cryptocurrencies \u201cknew very well the risks they were taking,\u201d just as a gambler does \u201cin a casino.\u201d<\/p>\n
\u201cA casino where the machines are rigged by the owner,\u201d Smaldone quipped in response to AFP.<\/p>\n
An edited version of Monday\u2019s interview went viral on social media, fuelling further controversy.<\/p>\n
In the video, the president and journalist Jonathan Viale can be heard ironically quipping that their questions were prearranged.<\/p>\n
However, later in the interview, at the request of members of Milei\u2019s team, the journalist allowed Milei to alter an answer, after conceding that it could cause him \u201clegal trouble.\u201d<\/p>\n\nrelated news<\/h6>\n<\/p>\n<\/section>\n
by Leila Macor, AFP<\/p>\n
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Members of the opposition Uni\u00f3n por la Patria (Peronist) coalition have declared their intention to push for Milei\u2019s impeachment, though they lack the necessary votes to make it happen.<\/p>\n
\u201cOn a scale of 0 to 10, this possibility is zero,\u201d said political analyst Carlos Germano.<\/p>\n
Others are calling for the creation of an investigative committee, a more feasible initiative, while a third proposal from the left seeks to summon the president for questioning in Congress. This would force him to answer questions from lawmakesr. Milei has previously described Congress as a \u201cnest of rats.\u201d<\/p>\n
The PRO party, a Milei ally led by former president Mauricio Macri (2015\u20132019), described the case as \u201cvery serious\u201d and said it had \u201cdamaged the country\u2019s credibility.\u201d\u00a0<\/p>\n
However, they declined to support impeachment proceedings \u201cat this stage.\u201d<\/p>\n
\u201cClearly, the president has found himself at the centre of a scam that has affected many people, and that warrants a very serious investigation,\u201d Macri stated.<\/p>\n
\u00a0<\/p>\n
What legal risks does Milei face?<\/strong><\/h4>\nImpeaching a sitting president requires a two-thirds majority in both chambers of Congress.<\/p>\n
Adolfo Su\u00e1rez Erdaire, a lawyer specialising in digital fraud who is investigating the case, told AFP that even if impeachment proceedings were successful,\u201d\u2018the only political penalty the President would face would be removal from office and disqualification from holding public office in the future.\u201d<\/p>\n
However, once his term ends, he could face ordinary criminal charges, with potential sentences of up to six years in prison, as well as civil lawsuits from affected investors seeking damages.<\/p>\n
\u201cThere is an ongoing legal risk because judicial cases always leave a trail,\u201d he explained.<\/p>\n
\u00a0<\/p>\n
Who else is involved?<\/strong><\/h4>\nAlongside Milei, the case also involves US businessman Hayden Mark Davis, the CEO of Kelsier Ventures and one of the creators of $LIBRA; Singaporean entrepreneur Julian Peh, who launched the currency via the website \u2018vivalalibertadproject.com\u2019; and Argentine citizen Mauricio Novelli, founder of a tech forum that drew the duo to Buenos Aires last October.\u00a0<\/p>\n
Milei himself revealed on X that he had a \u201cvery interesting\u201d meeting with Davis at the Casa Rosada on January 30.\u00a0<\/p>\n
\u201cHe advised me on the impact and applications of blockchain technology and artificial intelligence in the country,\u201d he wrote in a post on social media.<\/p>\n
Novelli is also the co-founder of N&W Professional Traders, a financial training company where Milei taught classes before entering politics.<\/p>\n
\u201cI\u2019ve known him for years,\u201d the President said.<\/p>\n
\u00a0<\/p>\n
What has been Milei\u2019s response?<\/strong><\/h4>\nOn Monday night, the TN news channel aired an interview with Milei, which had been recorded earlier that afternoon.\u00a0<\/p>\n
\u201cI didn\u2019t promote it, I shared it,\u201d Milei insisted during questioning, claiming that his endorsement of $LIBRA was done \u201cin good faith.\u201d<\/p>\n
\u201cBy trying to give Argentines a helping hand, I got a slap in the face,\u201d the President remarked, arguing that those who invest in cryptocurrencies \u201cknew very well the risks they were taking,\u201d just as a gambler does \u201cin a casino.\u201d<\/p>\n
\u201cA casino where the machines are rigged by the owner,\u201d Smaldone quipped in response to AFP.<\/p>\n
An edited version of Monday\u2019s interview went viral on social media, fuelling further controversy.<\/p>\n
In the video, the president and journalist Jonathan Viale can be heard ironically quipping that their questions were prearranged.<\/p>\n
However, later in the interview, at the request of members of Milei\u2019s team, the journalist allowed Milei to alter an answer, after conceding that it could cause him \u201clegal trouble.\u201d<\/p>\n\nrelated news<\/h6>\n<\/p>\n<\/section>\n
by Leila Macor, AFP<\/p>\n
\t\t\t\t\t\t\t\t<\/p>\n
Alongside Milei, the case also involves US businessman Hayden Mark Davis, the CEO of Kelsier Ventures and one of the creators of $LIBRA; Singaporean entrepreneur Julian Peh, who launched the currency via the website \u2018vivalalibertadproject.com\u2019; and Argentine citizen Mauricio Novelli, founder of a tech forum that drew the duo to Buenos Aires last October.\u00a0<\/p>\n
Milei himself revealed on X that he had a \u201cvery interesting\u201d meeting with Davis at the Casa Rosada on January 30.\u00a0<\/p>\n
\u201cHe advised me on the impact and applications of blockchain technology and artificial intelligence in the country,\u201d he wrote in a post on social media.<\/p>\n
Novelli is also the co-founder of N&W Professional Traders, a financial training company where Milei taught classes before entering politics.<\/p>\n
\u201cI\u2019ve known him for years,\u201d the President said.<\/p>\n
\u00a0<\/p>\n
What has been Milei\u2019s response?<\/strong><\/h4>\nOn Monday night, the TN news channel aired an interview with Milei, which had been recorded earlier that afternoon.\u00a0<\/p>\n
\u201cI didn\u2019t promote it, I shared it,\u201d Milei insisted during questioning, claiming that his endorsement of $LIBRA was done \u201cin good faith.\u201d<\/p>\n
\u201cBy trying to give Argentines a helping hand, I got a slap in the face,\u201d the President remarked, arguing that those who invest in cryptocurrencies \u201cknew very well the risks they were taking,\u201d just as a gambler does \u201cin a casino.\u201d<\/p>\n
\u201cA casino where the machines are rigged by the owner,\u201d Smaldone quipped in response to AFP.<\/p>\n
An edited version of Monday\u2019s interview went viral on social media, fuelling further controversy.<\/p>\n
In the video, the president and journalist Jonathan Viale can be heard ironically quipping that their questions were prearranged.<\/p>\n
However, later in the interview, at the request of members of Milei\u2019s team, the journalist allowed Milei to alter an answer, after conceding that it could cause him \u201clegal trouble.\u201d<\/p>\n\nrelated news<\/h6>\n<\/p>\n<\/section>\n
by Leila Macor, AFP<\/p>\n
\t\t\t\t\t\t\t\t<\/p>\n
related news<\/h6>\n<\/p>\n<\/section>\n
by Leila Macor, AFP<\/p>\n
\t\t\t\t\t\t\t\t<\/p>\n