Exorbitant profits for one – million damage for others: a cryptocurrency tinned by the Argentine President has crashed. Lawyers have filed charges against Milei.
Argentine lawyers have filed a lawsuit before a criminal court for fraud against President Javier Milei. They accuse Milei of having advertised a cryptocurrency on social media, the value of which broke only hours later, as one of the lawyers from the AP news agency announced.
“As part of this illegal association, the crime of fraud was committed, in which the president’s actions were essential,” said lawyer Jonatan Baldiviezo. It should be expected that a judge will be entrusted with the case today and that he will be handed over to a prosecutor for further investigation.
Financial side speaks of Millions of losses
On Friday, Milei released the post on X, in which he campaigned for $ Libra – a coin that he testified to “promote economic growth by financing small companies and start -ups”. A few hours later, he extinguished the contribution, the value of the currency collapsed. According to the financial side of Dexscreener, investors bore millions of losses.
Expert Javier Smaldone described the cryptocurrency as “rug pull”: a widespread type of snowball system in the crypto industry. As many investors as possible are attracted to a new cryptocurrency. As soon as the value of the currency has risen sharply, the major shareholders sell their shares and the currency breaks down. According to Smaldone, this process at $ Libra took about two hours. “The profit is around $ 107 million,” said the computer scientist of the AFP news agency.
Coin developers are responsible
After deleting the post, Milei said to X that he knew nothing about the development of the currency and accused his political opponents to take advantage of the incident. The President’s office announced that the country’s anti -corruption office would act immediately, and confirmed that Milei and members of his administration recently met with representatives of KIP Protocol – the developers of the coin. “All information collected as part of the investigation will be handed over to the judiciary,” said an explanation.
Hayden Mark Davis, one of the representatives of KIP Protocol, blamed the president in a video for the collapse of the cryptocurrency.
Anti -corruption authority determined
After the collapse of the currency, the Argentine Presidential Office stated that in view of the events, Milei himself hired the anti -corruption authority OA “to investigate whether a member of the government, including the President, was abusive”. Milei was in no way involved in the development of cryptocurrency.
Milei was criticized by the opposition. Former President Christina Kirchner called Milei on X a “crypto scam”. The Senator Martín Lousteau from the Center Party UCR pointed out that Milei had already advertised a cryptocurrency for the second time that later turned out to be fraud.
Other celebrities with their own coins
Other celebrities even have their own cryptocurrencies – such as Rapstar Cardi B. and the incumbent US President Donald Trump. The so-called $ Trump coins recently caused a lot of sensation: Trump had taken up this shortly before he took office. Much of those coins is two companies combined with the Trump organization: CIC Digital and Fight Fight Fight.
Again and again there are allegations of fraud in this connection with cryptocurrencies, especially when a currency is only praised on social media and shortly afterwards crashes: then experts often suspect snowball systems behind it. The cryptoma market is less regulated than, for example, regular securities trading.
