Javier Milei, the president of Argentina, is accused of being a fraudster for his promotion of the LIBRA cryptocurrency, which launched on Friday and immediately soared above$ 4 billion in market cap before spectacularly falling.
According to the Associated Press, former Argentine Central Bank head Claudio Lozano was one of the political critics of Milei who filed the claims on Sunday in an Argentinian legal court.
The problem alleges that the group behind the LIBRA cryptocurrency—a crypto investment organization known as Kelsier Ventures and its CEO Hayden Davis—committed” an indefinite amount of frauds” with Milei’s involvement.
” Within this unlawful organization, the crime of fraud was committed, in which the government’s steps were essential”, Jonatan Baldiviezo, a attorney and one of the defendants, told the AP.
Late on Friday, Milei promoted the LIBRA gift along with a connection to the site for the Viva La Libertad Project. By funding little Brazilian businesses and startups, Milei stated in a since-deleted post that” this secret job may be dedicated to encouraging the development of the Brazilian economy.”
The Brazilian president’s tweet, which was suggestive of US President Donald Trump’s wonder meme coin launch in late December, sparked shockwaves in the crypto industry as traders and observers tried to determine the project’s legitimacy and Milei’s tweet.
Shortly after LIBRA’s start, crypto analytics companies like Bubblemaps and Chainalysis raised concerns about several potential problems with the job. In specific, Bubblemaps revealed 82 % of the source of the LIBRA gift was held by one cluster of pockets, meaning that a second individual—or a group of associated individuals—controlled the vast majority of the offer.
As concerns mounted, traders sold off positions, and the token crashed by 89 % in value, Bubblemaps claimed the team behind the project” cashed out”, removing some$ 87 million in USDC and SOL, the native token of the Solana network, from liquidity pools that serviced the token.
Therefore, as LIBRA imploded, President Milei deleted his original post and followed up with another disavowing the job.
” A few hours ago I posted a message, as I have many times before, supporting an reported personal walk with which I certainly have no link”, he wrote in the article. ” I wasn’t informed of the project’s details, and after learning about them I decided not to continue promoting it ( that’s why I deleted the tweet )”. The key immediately tanked deeper, losing more than 96 % of its worth from its peak value.
The team of attorneys now suing Milei for his actions obviously didn’t have enough evidence to support the mea culpa. According to the AP, an Argentinian court is scheduled to either attribute a judge to the situation or send it to a counsel on Monday.
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