Argentinas President Milei Rejects Claims of Crypto Fraud

Reuters reports that Argentine President Javier Milei has denied promoting a newly launched cryptocurrency known as $Libra, which experienced a sharp decline in value shortly after he mentioned it on social media. The coin’s market price surged before plummeting drastically, leading to substantial financial losses for most investors.

A judge is now evaluating whether the president should face fraud charges related to this incident. On Monday, Milei asserted that he had acted “in good faith” and dismissed complaints from investors by comparing their actions to gambling: “If you lose money at a casino, why complain when you knew about the risks?”

In an interview with Argentine TV channel Todo Noticias on Monday, following an unusually quiet weekend on social media, President Milei defended his initial post on X (formerly Twitter), which included a link to a site selling $Libra. He emphasized that he did not endorse the cryptocurrency but merely shared information about it.

Milei promptly deleted his post after just a few hours of posting it, drawing criticism from political rivals and investors alike. Some critics argue that the launch of $Libra resembled a “rug pull” tacticwhere promoters attract buyers by offering enticing deals only to stop trading activity and pocket funds raised during sales.

The presidential office stated that Milei had no involvement in developing $Libra, and it announced that the Anti-Corruption Office would investigate if he acted improperly. President Milei justified deleting his post by explaining that at first, he was unaware of its details; upon learning more, he decided against endorsing it.

Opposition politicians remain unswayed by these statements, threatening to initiate impeachment proceedings against Milei. While political analysts believe the opposition lacks the necessary votes for an impeachment trial, this scandal risks diverting President Milei’s attention from his agenda of radical reforms.

A federal judge is set to decide whether fraud allegations brought against the president should proceed. In his TV interview, Milei appeared defensive and stated that he had “nothing to hide.” He also emphasized that those who invested in $Libra did so voluntarily, knowing about the risks involved.