Argentina's President Javier Milei Faces Criminal Charges Over Controversial Cryptocurrency LIBRA
In a dramatic political development, four Argentine political leaders have filed a criminal complaint against President Javier Milei on allegations of illicit association, fraud, and failure to fulfill the duties of a public official. These accusations stem from his promotion of a cryptocurrency called LIBRA, which has been linked to potential fraudulent activities.
The legal complaint, made public on social media, alleges that President Milei has been a key figure in a massive scheme that has purportedly caused losses exceeding $4 billion for over 40,000 individuals. The document describes him as a necessary participant in an alleged "megafraud" involving others close to his administration, including party activists and prominent figures such as Martín Ménem, the President of the Chamber of Deputies.
Among those implicated are Julián Peh, the CEO of Kip Protocol, who developed the LIBRA cryptocurrency, and Hayden Mark Davis of Kelsier Ventures, who supplied the necessary technology for its launch. The complaint paints a grim picture of an organized scheme design to commit hundreds of scams simultaneously and premeditatedly.
The complaint states, "In this megafraud, the individuals who planned and created the LIBRA project were indispensable, as were those who promoted it and provided assurance and backing for the project."
Simultaneously, the main opposition group in Argentina, Unión por la Patria (UxP), has called for an impeachment trial against Milei, claiming his involvement in a crypto fraud represents an unprecedented scandal. Former President Cristina Kirchner directly criticized Milei, labeling him as a pawn in a digital scam and questioning how, from being an advocate of free-market principles, he became embroiled in actions resembling a Ponzi scheme.
Kirchner's emotionally charged statement on social media pointed out that the president had taken advantage of his position to inflate the value of a private cryptocurrency, leading countless citizens to unknowingly invest in a venture that ultimately resulted in significant losses. "You turned Argentina into a casino where the dealer is the President himself," she concluded.
Other opposition members, including those from the Left Front and the Civic Coalition, have echoed similar sentiments, demanding that President Milei provide clarifications regarding the promotion of this cryptocurrency and its implications for the Argentine economy. Civic Coalition President Maximiliano Ferraro suggested that Milei could be liable for violations of Public Ethics and Financial Entities laws, describing the situation as potentially involving money laundering and fraud.
Despite the gravity of the situation, reactions from the presidential administration have largely been muted. Security Minister Patricia Bullrich, however, has defended Milei, framing the impeachment efforts as an excessive political strategy aimed at undermining his presidency. She remarked, "What happened last night was an atomic bomb to try to bring the president down with a single blow."
Critics have pointed to the LIBRA cryptocurrency as a creation benefiting its developers at the expense of ordinary investors. Financial experts have compared its promotional tactics to those of traditional scams, emphasizing that without regulatory oversight, such digital assets can resemble Ponzi or pyramid schemes, designed primarily for the financial gain of their creators.
As investigations unfold, the lawsuit seeks precautionary measures, including judicial searches of the presidential residence and the blocking of implicated accounts to trace the financial activity tied to LIBRA transactions. The crypto fiasco has prompted scrutiny from the Argentine Fintech Chamber, which has voiced its commitment to collaborate with authorities to ensure that cryptocurrency serves as a progressive tool rather than a means for fraudulent activities.
Argentina is regarded as a leader in cryptocurrency and blockchain technology adoption, boasting over 25 million active users and a transaction volume surpassing $911 billion in 2024. The outcome of this legal battle could significantly impact not only Milei's presidency but also the broader landscape of cryptocurrency regulation in Argentina.
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