A judge in Argentina has been appointed to investigate allegations of fraud against President Javier Milei following his brief promotion of a cryptocurrency that experienced a rapid collapse in value shortly after its launch last week. President Milei has denied any involvement in the scandal and stated that he acted in good faith.
The President and his office have refuted any connection with the creators of the $LIBRA cryptocurrency, asserting that he initially endorsed it as a potential entrepreneurial venture that could benefit Argentina. However, upon further investigation, Milei withdrew his support for the project.
Legal complaints of fraud were filed against the libertarian President on Sunday, leading to the case being assigned to Judge María Servini of Federal Court No. 1 in Buenos Aires. There is no set deadline for the completion of the investigation into the allegations.
President Milei had tweeted on Friday evening in support of the $LIBRA crypto coin, stating that it aimed to stimulate economic growth by providing funding to small businesses and startups. The cryptocurrency experienced a brief surge in value, reaching a market capitalization of over $4 billion, but its value began to decline amidst concerns from critics that it might be a scam.
The coin, developed by KIP Protocol and Hayden Davis, was accessible through a link directing users to a website named vivalalibertadproject.com, a nod to Milei's signature phrase 'Viva la libertad!' used in his speeches and social media posts.
Following the public backlash and the plummeting value of the cryptocurrency, President Milei removed his post to prevent further speculation and exposure. His office clarified that he was not involved in the development of the cryptocurrency and decided to distance himself from the project.
In response to the allegations, Milei emphasized that he was unaware of the specifics of the cryptocurrency and accused his political adversaries of exploiting the situation. He reiterated that investors who participated in the project were aware of the risks involved as volatility traders.
The country's Anti-Corruption Office, operating under the executive branch, will conduct an investigation into the case. Plaintiffs have alleged that Milei's actions were part of an illicit association to commit fraud in the episode.
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