Judge Selected to Investigate Allegations of Fraud Against Argentine President Javier Milei
BUENOS AIRES, Argentina (AP) — A judge has been appointed to investigate claims of fraud against President Javier Milei following his brief promotion of a cryptocurrency that drastically lost value shortly after its launch last week. The allegations have sparked controversy and raised questions regarding Milei’s involvement with the controversial $LIBRA cryptocurrency.
Allegations Surrounding Cryptocurrency Promotion
On Monday, Judge María Servini from Federal Court No. 1 in Buenos Aires was assigned to the case, which stems from complaints filed by lawyers in Argentina alleging that Milei engaged in fraudulent behavior related to the cryptocurrency project. The judge does not have a specified deadline for concluding her investigation.
Milei, who distanced himself from the scandal, asserted that he acted in good faith when he initially endorsed the cryptocurrency on social media. The president’s office has denied any direct involvement with the $LIBRA coin’s creators, explaining that Milei initially viewed the venture as an entrepreneurial initiative that could benefit Argentina’s economy. However, as criticisms mounted, suggesting potential fraudulent intentions behind the coin, he withdrew his support.
Crisis Moment for $LIBRA Coin
Launched on February 17, the $LIBRA cryptocurrency was promoted by Milei as a means to encourage economic growth by backing small businesses and startups. It momentarily reached a market capitalization exceeding $4 billion but collapsed within hours, leading to significant financial losses for many investors. As the value plummeted, Milei deleted his promotional post and later expressed he had been unaware of the cryptocurrency’s details prior to the launch.
His office released a statement clarifying that Milei had no involvement in the coin’s development, emphasizing his typical practice of supporting entrepreneurial endeavors in Argentina. Following public outrage and the cryptocurrency’s disastrous performance, Milei decided to delete his post to mitigate speculation surrounding the project.
Legal Ramifications and Reactions
Milei responded to the unfolding situation on his social media, estimating that individuals who chose to invest in the cryptocurrency were aware of the risks involved, describing them as ‘volatility traders.’ He expressed a willingness to cooperate with any inquiries, stating, “I have nothing to hide and I have no problem coming forward and showing my face.”
Jonatan Baldivieso, a lawyer representing one of the plaintiffs, indicated that the allegations claim Milei’s actions constitute a part of an illicit association aimed at committing fraud. He stated, “Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential.”
In a parallel move, the country’s Anti-Corruption Office, which functions under the executive branch, announced that it would also investigate the incident surrounding the cryptocurrency.
Public Sentiment and Ongoing Coverage
Public sentiment surrounding the cryptocurrency scandal is expected to impact Milei’s presidency moving forward, as protests against his administration were evident, including demonstrators carrying signs criticizing the president outside the Casa Rosada presidential office.
As the situation develops, observers will be watching closely to see how the judicial inquiry unfolds and what implications it may have for Milei and his administration.
For continued updates on this developing story, follow AP’s coverage of Latin America and the Caribbean at AP News.
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