Milei's 'crypto fiasco': Anti-corruption will investigate his connection to a possible scam

BarcelonaThe first major crisis of Javier Milei's government in Argentina is linked to cryptocurrencies. The president of the Latin American country promoted on Saturday on his X account the launch of a new digital currency called $Libra and argued that it would help "incentivize the growth of the Argentine economy." After reports appeared about possible links between this token and virtual scams, however, the leader backed down and deleted the support publication. Immediately, the value of that crypto asset – the capitalization had skyrocketed to $4.5 billion – plummeted. Now the Argentine Anti-Corruption Office will investigate the leader's relationship with this initiative at the request of Milei himself.

"Some hours ago I published a tweet, as in other infinite times, I donated support to a supposed private business with which, obviously, I have no connection. I was not familiar with the details of the project and after having received the information I was going to decide not to continue donating and it spread (per això "I deleted the tweet," the Argentine president apologized in a public message after the mitjanit. Later, the president's office confirmed that Milei had held a meeting with representatives of KIP Protocol, the company responsible for the launch of $Libra, on October 19, in which the company's intention to develop a project called "Viva la Libertad" to finance private companies in the country using technology had been discussed. blockchain.

Milei had also met last month at the Casa Rosada with Hayden Mark Davis, another of the promoters of $Libra. "Mr. Davis did not have and does not have any connection with the Argentine government and was presented by the representatives of KIP Protocol as one of their partners in the project. Finally, yesterday, the president shared a post on his personal accounts announcing the launch of the KIP Protocol project, as he does daily with many entrepreneurs who want to launch a project to create work and avoid any speculation and not give it further dissemination, he decided to delete the post," they insist from the office of the Argentine president.

Davis has also spoken out about the controversy through a video and a statement published on X, and his version of the events clashes with Milei's. The crypto investor presents himself as an "advisor" to the president, blames him for collapsing the price of $Libra and assures that he has been working with his team on other projects tokenization in Argentina. "Things did not go as planned," Davis laments. The businessman makes it clear that they had agreed on the public support of the leader for the cryptocurrency and that, "despite previous commitments, Milei and his team unexpectedly changed their position." "This abrupt decision was made without warning and directly contradicted previous guarantees," he criticizes in the text. Davis also says that he will inject liquidity again token, which has trapped more than 40,000 investors who responded to Milei's call.

As explained by the Argentine newspaper The Nation, an hour after the launch of the cryptocurrency, a few digital wallets that concentrated almost all the tokens They withdrew cash worth about 90 million dollars, causing the value of the currency to plummet. "Liberal Argentina grows! This private project will be dedicated to encouraging the growth of the Argentine economy, helping small Argentine businesses and entrepreneurship. The world wants to invest in Argentina," Milei had indicated hours earlier in the message that she deleted. $Libra was a mem coin, as cryptocurrencies are known that do not have real economic support and are based on capitalizing on the enthusiasm that revolves around a phenomenon or a person on social networks. According to analysts cited by the same newspaper, the vast majority of mem coins These are projects that "die soon after birth" and are susceptible to becoming scams, since the creators can suddenly abandon the project and leave the currency illiquid.

Research and opposition pressure

Argentina's Anti-Corruption Office will investigate both Milei, at his own request, and members of his cabinet for their links to $Libra. "President Javier Milei has decided to immediately intervene with the Anti-Corruption Office (OA) to determine whether there was improper conduct by any member of the national government, including the president himself," his office said in a statement. This body is an autonomous body but dependent on the executive branch under the Argentine Ministry of Justice and its director, Alejandro Melik, was a partner of the current Argentine Minister of Justice, Mariano Cúneo Libarona, when he was a lawyer.

Opposition parties have taken advantage of this cryptofiasco to demand explanations from Milei and attack his management. Former Argentine president Cristina Fernández has accused the leader of operating as "the hook for a digital scam" in this case. "Thousands of people trusted you, bought a lot and in a matter of hours lost millions, while a few (I bet my head that all libertarians) made a fortune with privileged information. Milei, you yourself operated as the hook for a digital scam!" said the Peronist leader.

From the center party Civic Coalition they have announced that they will present a project to establish a special investigative commission and analyze the situation, since they consider that the promotion of this cryptocurrency could configure "crimes of money laundering, fraud and scam." "The president could have openly violated the law of public ethics and the law of financial entities, particularly with regard to advertising for the collection of resources," said the president of the formation and Argentine deputy, Maximiliano Ferraro. The Argentine left has also joined this request, and the deputy and one of the leaders of the Left and Workers Front, Nicolás del Caño, has asked that the possible "interpellation" of Milei in the Lower House be broadcast on a national channel.