Legislators in Argentina’s Chamber of Deputies endorsed an inquiry into President Javier Milei’s purported involvement in the Libra (LIBRA) cryptocurrency controversy.
As per an April 8 article by the local news source Buenos Aires Times, members in the lower house voted 128 to 93 in support, with seven abstentions. This proposal had previously failed to progress in the Senate.
This development comes after Milei advertised the LIBRA memecoin on social media. Leveraging his standing as a governmental official and his 3.8 million followers, the token swiftly surged to $5, momentarily achieving a market cap of $4 billion.
Milei has since been charged with misconduct, as critics allege that LIBRA was a rug-pull scam and that he enticed investors. Attorney Jonatan Baldiviezo, alongside Marcos Zelaya, engineer María Eva Koutsovitis, and economist Claudio Lozano, a previous leader of Argentina’s central bank, filed a lawsuit accusing Milei of fraud.
Related: KIP Protocol discloses connection with Javier Milei-endorsed Libra rug pull
A presidential-scale calamity
Baldiviezo asserted that Milei’s endorsement was crucial in forming an “illicit partnership” with the promoters of the cryptocurrency. The non-profit organization Observatorio del Derecho a la Ciudad corroborated these concerns and initiated a case accusing the president of endorsing a scheme that allegedly led to over 40,000 investors losing excess of $4 billion.
Data from February indicates that the most affected investors of the LIBRA memecoin pump and dump scheme suffered a total loss of $251 million. Blockchain analytics reveal that out of the 15,430 wallets that transacted at a profit or loss exceeding $1,000, over 86% resulted in losses, aggregating a loss of $251 million.
In spite of multiple sources evidencing his social media activity, in the middle of February, Milei refuted allegations of promoting LIBRA. He stated at that time:
“I did not endorse that. What I did, I disseminated the information.”
Related: Javier Milei faces impeachment risks after endorsing $107M Libra rug pull
A purported family enterprise
A creator connected to the contentious Libra crypto token allegedly sent a text boasting about the ability to compensate Argentine President Javier Milei’s sister in return for the president promoting the memecoin’s parameters on social media. According to reports from February, Hayden Davis — an individual associated with the initiative — messaged an executive of a cryptocurrency investment firm stating he could pay Karina Milei for “influence” over the Argentine president:
“We can also have Milei tweet and meet in person and conduct promotions. […] I’ll send $$ to his sister and he will follow my directives and act as I wish.”
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