A judicial investigation is underway in Argentina to examine President Javier Milei's involvement with the cryptocurrency $LIBRA. Federal Judge Maria Servini has been appointed to lead the probe, which seeks to determine if Milei acted illegally by promoting the digital currency. The inquiry follows the cryptocurrency's sudden launch and subsequent value drop, raising concerns about Milei's actions and their legality.
The investigation stems from a post shared by President Milei, in which he promoted $LIBRA, a cryptocurrency developed by KIP Protocol. This move aligns with Milei's free-market rhetoric, where he often endorses various business ventures. However, the rapid decline in $LIBRA's value shortly after its launch has led to accusations and criticism. Even Hayden Davis, one of the developers behind the cryptocurrency, hinted at Milei’s involvement as a factor in its downturn.
In response to the fallout, Milei deleted his promotional post and distanced himself from $LIBRA. A statement from his office clarified that while he frequently promotes entrepreneurial projects, he was not involved in the development of $LIBRA.
"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," stated the president's office.
The controversy has sparked political tension, with some opposition figures suggesting that Milei could face an impeachment trial. Despite these claims, experts largely dismiss the likelihood of impeachment occurring as a result of this scandal. Nonetheless, the potential repercussions of the investigation loom large over the administration.
Critics have highlighted that $LIBRA was marketed on a website using Milei’s campaign slogan, "Long Live Liberty!" Observatorio del Derecho a la Ciudad, a local NGO, has accused Milei of causing financial losses for numerous investors. Jonatan Baldiviezo, a lawyer involved in filing a complaint against Milei, expressed strong allegations.
“Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential,” said Jonatan Baldiviezo.
In contrast, an anonymous government official suggested that Milei himself might be the primary victim of the cryptocurrency's volatile trajectory.
“The only one on the face of this earth who was cheated is Milei,” remarked an anonymous government official.
This incident underscores the complexities involved in political figures engaging with volatile financial instruments like cryptocurrencies. While some Argentinians view this as a typical risk associated with digital currencies, others see it as a failure of responsibility from their leader. The investigation's outcome could either clear Milei’s name or further complicate his presidency.
