The Argentine president, Javier Milei, is at the center of a scandal that could mark a milestone in his term, facing serious judicial accusations following the promotion of the cryptocurrency $LIBRA.
This announcement, made via a tweet on February 14, unexpectedly boosted the cryptocurrency’s value from zero to $4.7 in a matter of minutes.
However, the situation took a drastic turn when large token holders sold off massively, withdrawing 90 million dollars, which led to an abrupt collapse of its quotation and millions in losses for many investors.
How the multi-million dollar scam happened
Since then, 112 complaints have been filed against Javier Milei, which include charges of fraud, bribery, and conflicts of interest with public office.
There are reasons to believe that this situation could be linked to a scam known as a “rug pull,” in which developers artificially inflate the value of a digital asset to attract investors and then liquidate their holdings, leaving new buyers with worthless coins.
Hayden Mark Davis, one of the creators of $LIBRA, claimed to be an advisor to the president and revealed that he could inject up to 100 million dollars to rescue the asset, although experts have questioned the viability of such a promise.
The crisis of confidence in Milei puts at risk not only his government but also the economic stability of Argentina, at a critical moment of control over inflation.
While some members of his cabinet defend his management as a political attack, the opposition has already begun to consider the possibility of pushing for a motion of censure.
In response to the growing pressure, Milei has ordered the Anti-Corruption Office to investigate the $LIBRA transactions and has created the Investigation Task Unit (UTI) to address the scandal.