Memecoin Scandal Threatens Argentine President Javier Milei | EUROtoday

Argentina’s president, Javier Milei, has come below hearth for the abrupt collapse of a cryptocurrency he promoted, in a transfer that has triggered lawsuits and requires his impeachment.

Milei is dealing with greater than 100 complaints in opposition to him on the nation’s supreme court docket, accusing him of taking part in an alleged rip-off associated to the cryptocurrency $Libra, which opposition politicians estimate has resulted in monetary losses for 40,000 individuals.

On February 14, the Argentine chief posted a message on his X account, which has 3.8 million followers: “Liberal Argentina grows! This private project will be dedicated to encourage the growth of Argentina’s economy, funding small Argentine companies and ventures. The world wants to invest in Argentina. $Libra,” he wrote.

In a matter of minutes, $Libra went from being price fractions of a cent to $4.97 per unit. But sadly for buyers, this hike was short-lived. Within hours it plummeted to $0.19.

Now, prosecutors will decide if there are ample components to maneuver ahead with a legal investigation in opposition to the president and different attainable suspects.

Milei is accused of serving to to inflate the worth of the forex by selling it on X, then withdrawing his help inflicting the cryptocurrency to break down.

Former Argentinian president Cristina Kirchner claimed that Milei was a “crypto fraudster” in a prolonged publish on X by which she additionally accused him of turning the nation right into a on line casino by which he was the croupier.

“The president has to come to congress. He cannot investigate himself,” mentioned politician Esteban Paulon, a member of the opposing socialist celebration, in a message on X calling for Milei’s impeachment.

Milei has since distanced himself from this collapse, claiming he didn’t profit from the memecoin.

“A few hours ago I posted a tweet, as I have done countless times before, about private initiatives that seek to contribute to the development of our country. I have no relationship with the company that created this cryptocurrency nor have I received any benefit.” In an announcement on X, the official account for the workplace of the Argentinian president posted, “Given the facts, President Javier Milei has decided to immediately involve the Anti-Corruption Office (OA) to determine whether there was improper conduct on the part of any member of the National Government, including the President himself.”

Entrepreneur Hayden Mark Davis, one of many creators of the cryptocurrency $Libra, additionally blamed Milei for the collapse.

“His team had secured his public support at launch and assured me that his support would continue throughout the process,” the American investor mentioned in an announcement launched by his agency, Kelsier Ventures. “Despite prior commitments, Milei and his team unexpectedly reversed their position, withdrawing their support and removing all previous endorsements on social media,” Davis claimed, indicating that this setback would have triggered panic promoting of the token.

“It is critical to recognize that memecoin investments are driven by trust and endorsement. When Milei and his team removed their posts, investors who had purchased the token, basing their trust on that endorsement, felt betrayed.”