Argentina's President Defends Against Crypto Fraud Claims Amid Controversy

President Javier Milei of Argentina has rejected fraud allegations related to the $Libra cryptocurrency collapse, asserting he did not endorse the coin despite promoting it online. Amid calls for impeachment from opposition leaders, a judge will determine if Milei should face charges.

Argentine President Javier Milei has firmly rejected accusations of fraud stemming from his recent promotion of the cryptocurrency $Libra, which suffered a severe downfall shortly after he mentioned it in a social media post. The value of the digital coin surged rapidly before crashing, resulting in substantial financial losses for many investors. A judicial inquiry will assess if Milei is liable for any wrongdoing in this incident. During a televised interview, the president defended his actions, suggesting that such losses resemble the risks taken by gamblers: "If you go to a casino and lose money, what's the complaint when you knew the risks?"

In the interview with Todo Noticias, Milei asserted that his post on X, which included a link to a $Libra sales site, should not be regarded as an endorsement. He explained that he deleted the mention after a few hours upon learning the project's details, clarifying that he "merely shared" the information without promoting it. However, his quick deletion of the post attracted criticism from political adversaries and aggrieved investors, leading to comparisons with schemes often referred to as "rug pulls," where developers lure in buyers and subsequently vanish with their investments.

The presidential office has vehemently maintained that Milei was not involved in the cryptocurrency's development and has pledged that the Anti-Corruption Office would investigate the president's conduct. Despite this, opposition parties have threatened to pursue impeachment proceedings against Milei, although political analysts suggest it will be challenging to gather the necessary votes for such a trial. The ongoing scandal risks overshadowing Milei's ambitious reform agenda, as public scrutiny and legal challenges mount. In his combative TV appearance, Milei affirmed his transparency, insisting the investments were made "voluntarily" with full awareness of the risks involved, likening the situation to "playing Russian roulette."