Argentine opposition politicians sought a bluff from President Javier Mairay after promoting a cryptocurrency that collapsed over the weekend, reportedly causing millions of dollars in losses.
Milei approved the lesser-known cryptocurrency token $Libra on Friday evening, with the project being “dedicated to fostering growth in the Argentine economy by funding small businesses and entrepreneurs.” It was announced. His post was linked to a website where you can purchase digital coins, and its domain name included Milei’s popular catchphrase, “Long Live Freedom.”
“The world wants to invest in Argentina,” Mairay added to his post to more than 3.8 million followers.
According to trading sites, tokens quickly rose in value. The Argentina Fintech Chamber of Commerce said the case could be equivalent to “ragpur”. This is a scam where cryptocurrency is rapidly expanding or “pumped up” and crashes while insiders “throw” stocks and render tokens worthless. Other economists and crypto experts said digital assets could become fraud or Ponzi schemes.
Milei deleted the post hours later, saying that he “doesn’t notice the details of the project”, but the scandal still caused a political fire. The federal prosecutor’s office also reportedly will look into whether the president is engaged in or involved in fraud or crime associations. He had violated his duties.
A group of lawyers filed a fraud lawsuit in Criminal Court on Sunday, “criminally condemning Javier Mairi, the president of the Argentine nation, in connection with the launch of the $libra token.”
Jonatan Baldiviezo, a lawyer and one of the plaintiffs, told The Associated Press that he saw an illegal association to commit “an indefinite number of frauds.” “In this illegal association, there was a fraud crime committed in which the president’s actions were essential,” he said.
Meanwhile, opposition lawmakers are seeking Mairay’s bullet each. “This scandal makes us embarrassed on an international scale, but we need to launch a request for each ammo on the president,” said Leandro Santoro, a member of the coalition of opposition.
“Mylay is someone who has to answer Congress. We want to know in stages. He’s involved in such things,” said Miriam Bregman, a well-known socialist leader and former presidential candidate. This isn’t the first time that he’s done it, but it’s exacerbated by his current role as president.”
Former President Christina Fernandez de Kirchner wrote on social media: You used the president’s investment to inflate its value. And to close it all down, you say you are “unfamiliar”! …From self-proclaimed “global leaders” to crypto fraudsters. ”
Latin American leaders also weighed on Mexican president Claudia Sheinbaum, saying “it would be very serious if confirmed, especially in terms of the president’s power to promote private matters.” .
The incident prompted comparisons to US President Donald Trump, who launched Trump Memecoin last month.
Mairay retaliated for criticism for denounced the enemy he called “the filthy rat of a political caste,” and saying he would “take advantage of this situation and do harm.” The presidential office said Milei was not involved in any stage of the development of cryptocurrency and decided to remove social media posts to limit further exposure. The Anti-Corruption Bureau added that it had been instructed to begin an investigation.
Horizon political analyst Marcelo Garcia has been involved in a political risk consulting firm, saying Mairay and his government need to “contain the crisis by clearly explaining what happened.” The largest investment community.
Cryptocurrency has exploded in recent years as disillusioned savers tried to keep their money outside traditional banks amid decades of economic crisis and rising inflation.
Analysts warn that the crisis could undermine Mailey’s reputation as an economic recovery manager and anti-corruption president ahead of midterm elections later this year.
