Argentine President Milei: The controversial cryptocurrency Libra and the fraud allegations

Argentine President Milei: The controversy surrounding the cryptocurrency Libra and the fraud allegations

Argentine President Javier Milei has found himself at the centre of a political storm after admitting to meeting with the creators of the cryptocurrency Libra, also known as the meme coin. In an interview with TV station Todo Noticias on Monday, Milei sought to defend his actions and reassure the public that his intentions were not fraudulent. "I'm a technology enthusiast and I see cryptocurrencies as a tool to finance entrepreneurs' projects, so I spread this information," he said.

Impeachment and impeachment

Despite his defense, however, Milei is facing serious charges. A weekend criminal complaint filed by local lawyers accuses him of promoting a fake cryptocurrency. The political opposition, particularly leftist Peronists, have seized on the controversy and are calling for his impeachment, claiming the president violated ethical standards.

The scandal escalated after Milei endorsed the pound on social media last Friday, leading to a dramatic rise in its market capitalisation to $4.5 billion. Just hours after his post, however, the president deleted the tweet, causing the cryptocurrency's value to plummet and creating a sense of deception among investors.

Confusion and speculation

Milei quickly distanced himself from the project, claiming he had no prior knowledge of the token's details. His abrupt change of stance has fuelled speculation that his social media account may have been compromised. A person associated with the Libra project, Hayden Davis, accused Milei's team of inconsistency, claiming that initial support was clear before the sudden turnaround.

"I'm a techno-optimist and this was suggested to me as a tool to help fund Argentinian projects. Admittedly, I was slapped when I saw how the situation developed," Milei said.

Downplaying the losses

In response to the growing scandal, Milei has called for an investigation into whether there was wrongdoing on his part or on the part of government officials. He also sought to mitigate the fallout by disputing reports that 44,000 investors had suffered losses, claiming the real figure was more like 5,000, with most of those affected coming from China and the US, not Argentina.

Milei's controversial endorsement of cryptocurrency and subsequent criticism shows how easily the political landscape can change in the turbulent waters of the cryptocurrency market. His next steps and the public's reaction will surely be watched with suspense.

*This is not an investment recommendation.

Coingarage team