Allegations of Cryptocurrency Scam Surround Argentinian Leader Javier Milei
Javier Milei, a prominent social media user and recently elected President of Argentina, faces scrutiny over his involvement in a cryptocurrency scheme that allegedly defrauded investors.
Milei promoted the Libra token, a memecoin with a surging market value that later collapsed, leading to accusations of a "rug pull" scam. Digital currency entrepreneur Hayden Davis, who helped launch the token, acknowledged making profits despite the decline.
Investors, including Barstool Sports founder Dave Portnoy, suffered significant losses and labeled the token "the biggest rug pull of all time." An internal government investigation is underway, and crypto industry leaders have criticized Milei's alleged involvement.
Davis Contradicts Milei's Account
Amidst the backlash, Davis contradicted Milei's statements. While Milei initially claimed Davis was his advisor, Milei's office released a statement denying any affiliation.
Davis asserted that Milei had endorsed the Libra token, but later reversed his support. He pledged to return his profits to investors, but Milei's office, Davis, and KIP Protocol, the company behind the token, have not responded to requests for comment.
Political Impact and Investor Confidence
The scandal has damaged Milei's reputation and raised concerns about his political judgment. Despite his economic reforms, his erratic behavior and decisions have sparked criticism and uncertainty among investors.
Pollsters suggest Milei may avoid major political consequences due to positive economic indicators, but his approval ratings have fluctuated. The episode highlights the challenges facing Milei as he attempts to lead Argentina through an economic crisis.