- Javier Milei claimed that he only shared news about $LIBRA and did not promote it.
- The Argentine Prez insisted that the most affected investors were Chinese and Americans.
- Milei defends his actions by highlighting the voluntary nature of investments in $LIBRA.
Argentine President Javier Milei has denied claims that he promoted the controversial $LIBRA cryptocurrency, which has led to several fraud lawsuits and calls for his impeachment. The scandal, dubbed “Libragate” by local media, has rocked the country as many investors suffered losses after the coin’s value plummeted. In an interview with Todo Noticias on February 17, Milei stated, “I did not promote that. What I did, I spread the word.”
Milei Defends His Actions
Melei explained that he shared information about $LIBRA soon after its creation due to his passion for cryptocurrency projects. Describing himself as a volatility trader, Melei argued that those who invested in $LIBRA were specialists, aware of the risks involved. He compared their losses to those experienced in a casino, saying, “If you go to the casino and lose money, what’s the complaint?”
Further, he downplayed the number of affected individuals, claiming that only about 5,000 people were involved, contradicting reports suggesting 44,000 investors. He insisted that most of the losses occurred among foreign traders, specifically Americans and Chinese, and not Argentinians. “It’s false that 44,000 people were affected—at most, it’s 5,000. He also said,
Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most. The vast majority of investors are Chinese and American.
The Libra Token Controversy
The $LIBRA token, which quickly gained attention, saw its value skyrocket before collapsing, sparking concerns over a potential “rug pull” scheme. Milei had initially supported the project, believing it could help entrepreneurs by funding startups. However, Melei deleted the tweet that promoted the token citing negative responses and rumors of a hack.
Milei claimed that he shared the information just three minutes after the coin’s creation because he was passionate about such projects. “I shared this the same way I’ve shared hundreds of things. My tweet came just three minutes after the coin was created because I’m passionate about these things and found out about it,” Milei said.
The controversy has sparked multiple fraud lawsuits, with critics questioning Milei’s role in the token’s promotion. Despite the growing legal challenges, Milei maintained that the matter was private and limited to those who voluntarily chose to invest in the token. “These are volatility traders who knew what they were doing,” Milei added.
Related: Argentina Crypto Scandal: Milei Accused of Market Manipulation
Milei’s Relationship with CoinX and the Backlash
In the aftermath of the $LIBRA incident, Milei faced scrutiny over his past interactions with CoinX, a cryptocurrency company that he highlighted during his presidential campaign. He had praised CoinX on his Instagram post for revolutionizing investment strategies to benefit Argentinians.
Melei stated that the platform was revolutionizing the way of investment to help Argentinians. Critics have connected this relationship to the $LIBRA scandal, raising concerns about the risks of endorsing such financial products without clear oversight.
Milei’s defense centers around the idea that investors were fully aware of the risks involved. However, the ongoing legal and political fallout continues to cast doubt on his actions, leaving many to question whether more responsibility should be placed on public figures promoting financial instruments.
