Fraud Complaints Filed Against Argentine President Javier Milei Over Cryptocurrency Promotion
MONTEVIDEO, Uruguay (AP) — In a controversial move that has sparked legal action, Argentine lawyers lodged fraud complaints against President Javier Milei in criminal court on Sunday. The complaints stem from Milei’s recent promotion of a cryptocurrency known as $LIBRA, which he shared on his social media platform, X, just days prior.
Cryptocurrency Promotion and Immediate Fallout
Milei’s post on Friday touted $LIBRA as a digital currency designed to ‘encourage economic growth by funding small businesses and startups.’ However, the post was removed just hours later, leading to a drastic decline in the value of the cryptocurrency. According to financial site Dexscreener, the rapid devaluation resulted in millions of dollars lost for investors who had jumped in shortly after Milei’s endorsement.
Particularly concerning for the plaintiffs was that the digital coin was developed by KIP Protocol and Hayden Davis, and could be purchased via a link directing users to a website named vivalalibertadproject.com, a nod to a popular phrase often used by Milei in his speeches.
Legal Implications and Accusations
Jonatan Baldiviezo, one of the attorneys filing the complaint, articulated serious concerns surrounding Milei’s actions, describing them as forming an “illicit association to commit an indeterminate number of frauds.” He emphasized the critical role that the President’s social media endorsement played in this scheme, characterizing it as a “rug pull” — a term used in the cryptocurrency realm to describe a situation where developers create a seemingly attractive token to lure investors, only to abandon the project and leave the tokens worthless.
The legal complaint was co-signed by Marcos Zelaya, another lawyer, alongside engineer María Eva Koutsovitis and economist Claudio Lozano, who previously held the presidency of the Argentine Central Bank under former President Alberto Fernández. The criminal justice system is anticipated to assign a judge or refer the case to a prosecutor for further examination by Monday.
Presidential Office’s Response
In a statement released on Saturday, the President’s Office clarified that Milei had not been involved in any stage of the cryptocurrency’s development. They indicated that the President decided to delete his earlier post to mitigate speculation and limit further exposure to the venture amid public backlash.
The administration challenged the fraud allegations, asserting, “The President shared a post on his personal accounts announcing the launch of KIP Protocol’s project, as he does daily with many entrepreneurs who wish to launch projects in Argentina to create jobs and attract investments.” They also disclosed that the country’s Anti-Corruption Office would take urgent action regarding the situation.
Ongoing Investigation and Reactions
Further complicating the narrative, the Milei administration acknowledged a recent meeting between the President and representatives from KIP Protocol. In a Saturday video, Hayden Mark Davis, a spokesperson for KIP Protocol, publicly criticized the President, attributing the cryptocurrency’s crash to Milei’s abrupt decision to withdraw support and erase previous promotional messages.
In light of the unfolding situation, all findings from ongoing investigations are expected to be submitted to judicial authorities to ascertain if any individuals or entities connected to KIP Protocol acted unlawfully.
Milei, responding to the allegations on social media, asserted that he was unaware of the project’s details prior to his post. He also suggested that his political adversaries were exploiting the situation for their benefit, stating, “I was not aware of the details of the project, and after getting informed, I decided not to continue promoting it.”
The legal and political ramifications of this incident are yet to unfold as the investigation into the matters continues.
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