Argentina President Javier Milei Denies Involvement in Crypto Scandal as Prosecutors Launch Probe

Argentina’s President Javier Milei has strongly denied any wrongdoing in relation to the recent cryptocurrency crash that has caused widespread financial losses. The cryptocurrency in question, $LIBRA, plummeted just hours after Milei posted a public endorsement of it on social media, leading to a significant loss for investors and sparking a flood of complaints.
Milei Denies Promoting Fraudulent Cryptocurrency
In a statement issued by his office, President Milei rejected accusations that he promoted the cryptocurrency in a fraudulent manner, stressing that he was not involved in any deceptive activities regarding the investment. The $LIBRA cryptocurrency’s sudden drop in value has raised suspicions among critics, with some accusing the president of potentially using his public platform to artificially inflate the value of the asset before it collapsed.
“I did not promote this cryptocurrency in any fraudulent way,” Milei said in a recent press conference. “Any accusations to the contrary are false and without merit.”
The timing of Milei’s endorsement of $LIBRA has drawn significant attention. Hours after the president’s social media post, the cryptocurrency lost nearly all its value, leaving many investors facing devastating financial losses. The incident, which has been dubbed “Cryptogate” by some media outlets, has sparked outrage across the country.
Federal Investigation Launched
In response to the controversy, Argentina’s federal prosecutors have announced that they will launch an official investigation into the matter. The probe will focus on whether Milei engaged in fraud, criminal association, or violated his duties by promoting the cryptocurrency to the public. Prosecutors will also investigate whether there were any violations of securities laws or other regulations related to the endorsement of digital assets.
Federal Judge Mariana Farfán, who has been assigned to the case, stated that the investigation will seek to determine whether there was any intentional misrepresentation or manipulation in relation to the $LIBRA cryptocurrency. The probe is expected to focus on the precise role that Milei’s public endorsement played in the events leading up to the currency’s collapse.
$LIBRA Cryptocurrency Crash
The $LIBRA cryptocurrency had generated significant attention in recent months, with some viewing it as a promising new digital asset. However, the coin’s dramatic fall last Friday raised questions about its stability and the practices surrounding its promotion. Several investors have already filed complaints, alleging that they were misled by the president’s endorsement of the cryptocurrency and accusing the promoters of artificially inflating its value.
The investigation into Milei’s involvement in the scandal could have serious implications for both his political future and the broader Argentine cryptocurrency market. If the probe finds evidence of criminal activity, it could result in legal consequences for the president, adding to the growing political pressure on his administration.
Political Fallout and Public Reaction
The scandal has added fuel to the political fire in Argentina, where Milei’s leadership has been heavily scrutinized in recent months. His critics have called for greater transparency and accountability, while his supporters have rallied behind the president, arguing that he is being unfairly targeted by political opponents.
In the wake of the crypto crash, Milei’s administration is now facing the challenge of restoring public confidence in both its economic policies and its handling of emerging digital assets. As the investigation unfolds, many will be watching closely to see if the president’s actions were indeed connected to any illegal activities or if the crash was simply a result of market volatility.
Looking Ahead
As the investigation into the $LIBRA cryptocurrency crash continues, the focus will shift to whether any concrete evidence emerges that ties Milei to fraudulent activities. The ongoing probe could influence not only the fate of the cryptocurrency in Argentina but also the political landscape as Milei’s presidency faces its first significant scandal.