Argentine President Accused of Cryptocurrency Fraud by Lawyers
Buenos Aires, Argentina - Argentine lawyers have filed fraud charges against President Javier Milei in criminal court, accusing him of promoting a cryptocurrency on social media.
Allegations and Details
According to the lawyers, Milei posted about a cryptocurrency called $LIBRA on Friday, claiming it aimed to support small businesses and startups. The post was deleted several hours later, and the value of the currency subsequently crashed, resulting in millions of dollars in losses for investors.
Investigation and Response
The President's Office stated that Milei was not involved in the cryptocurrency's development and removed the post to avoid speculation. However, lawyers believe the incident constitutes an illicit association to commit fraud, with Milei's actions being essential.
Claims of Rug Pull and Ethical Violations
Plaintiffs allege that Milei's actions resemble a "rug pull" scheme, where developers lure investors with attractive tokens and then abandon them, leading to worthless tokens. They also claim that Milei violated the Public Ethics Law by promoting a personal investment opportunity on official accounts.
Ongoing Investigation and Potential Charges
The judiciary is expected to assign a judge or prosecutor to investigate the case further. The Anti-Corruption Office under the Executive Branch has also initiated an investigation. If found guilty of fraud, Milei could face criminal charges.
President's Defense
Milei has denied knowledge of the cryptocurrency's details and blamed political opponents for exploiting the situation. The President's Office has acknowledged meetings with KIP Protocol representatives but claims to have no involvement in the project's development.
Implications for Cryptocurrency Regulation
The case has raised concerns about the regulation of cryptocurrencies and the potential for scams in the industry. The outcome of the investigation may have implications for future cryptocurrency regulations in Argentina and beyond.