An Argentine judge has been assigned to investigate President Javier Milei’s role in promoting the crypto currency $LIBRA, which crashed after he recommended it.
Milei posted about the coin on social media, sparking a brief rally, but he later deleted the post and denied any connection to the cryptocurrency. The fintech chamber suggested the case might be a “rug pull” scam, where investors are lured in and then abandoned. The investigation will be led by Federal Judge Maria Servini, who was assigned the case after over 100 complaints were filed.
Consultancy Wise Capital noted that the token is now being considered a hoax, marking a significant reputational crisis for Milei’s government.
Local NGO Observatorio del Derecho a la Ciudad has accused Milei and government officials of fraud and breach of duties. Claiming the scam affected over 40,000 people with losses exceeding $4 billion.
He Was Only A Follower
The relationship between politicians and cryptocurrency has always been close, with several high-profile figures leveraging digital currencies for various purposes.
These coins quickly gained popularity, with $MELANIA reaching a market cap of $4 billion within 30 minutes of its launch. The coins were intended as expressions of support rather than investment opportunities. More recently, El Salvador made headlines by becoming the first country to adopt Bitcoin as legal tender in 2021.
This bold move, spearheaded by President Nayib Bukele, aimed to reduce dependency on the U.S. dollar and facilitate easier remittances.
However, the country has since dialed back its ambitious Bitcoin policies, allowing businesses to choose whether to accept the cryptocurrency.