Key Takeaways
- The President has been accused of promoting the little-known $Libra cryptocurrency through his tweet on X.
- The price of $Libra spiked following the tweet before plummeting, but the damage was already done when President Javier Peres pulled down the tweet a few hours later.
- The opposition parties have now threatened to impeach the President, with some now calling him a crypto scammer.
A Group of lawyers in Argentina have filed a fraud complaint against President Javier Milei in the criminal court, accusing him of promoting cryptocurrency via social media.
According to a report on Reuters, the price of the little-known $Libra cryptocurrency soared briefly after his endorsement before falling, leading to losses for thousands of traders. The news has caused a serious scandal in the country, and the opposition party is now accusing President Javier Milei of promoting a scam, a change that the presidency has denied.
Damage Control
President Javier Mile’s tweet, which included a link to the project, was posted on his X social media page, which has over 3.8 million followers. The tweet caused a massive spike in value, which was followed by a drop in value.
“This private project will be dedicated to encouraging the growth of the Argentine economy.”
Hours later, President Javier Mile went into damage control and deleted the first message, claiming he wasn’t associated with the $Libra initiative. He wrote:
“I was not aware of the project’s details, and after becoming aware of it, I decided not to continue spreading it.”
Project Insiders made their Millions.
The response from Milei’s team describing the incident as a mistake has not quelled the uproar, as opposition party members are accusing the president of endorsing a scam and are calling for his impeachment. The National Securities Commission, the governing body of the capital market in Argentina, will determine if it will take action. In reaction to the development, the presidency said:
“President Javier Milei has decided to immediately involve the Anti-Corruption Office to determine whether there was improper conduct on the part of any member of the national government, including the president himself.”
According to the analyst Kobeissi Letter, anomalies with the website’s creation were seen just hours before launch, and restricted domain statuses were also observed. The analyst also revealed that the project’s insiders reportedly cashed out $87.4 million within three hours of launch.
The incident culminated in intense political fallout, with some opposition figures calling President Javier Milei a crypto scammer. Nonetheless, Congressman Diego Santilli dismissed impeachment calls as an attempt to overthrow the President.
Conclusion
The ensuing political turmoil, which could easily lead to polarization and political instability, comes at a time when the rest of the world is opening its arms to embrace the digital world. Should the opposition follow through with their threat, President Javier Milei could face severe legal and political consequences for his remarks.
