Argentina’s President Milei denies crypto fraud allegations

Argentine President Javier Milei has denied promoting a newly launched cryptocurrency which collapsed shortly after he mentioned it in a social media post on Friday.

The cryptocoin $Libra quickly rose in value before nosediving, causing severe losses for the majority of people who had invested in it.

A judge will now determine if the president should face fraud charges over the incident.

On Monday, Milei said he had acted “in good faith” and dismissed investors’ complaints, comparing their actions to people who gamble: “If you go to a casino and lose money, what’s there to complain about when you knew the risks?”

President Milei spoke about the $Libra incident in an interview with Argentine TV channel Todo Noticias on Monday, after a weekend during which he had stayed unusually quiet on social media.

He insisted that his post on X, which contained a link to a site selling $Libra, did not constitute an endorsement.

“I didn’t promote it, I merely shared it,” he told Todo Noticias’ Jonny Viale.

Milei’s post, which he deleted after just a few hours, drew heavy criticism not just from his political rivals in Argentina but also from those who had invested in the cryptocurrency.

Some have argued the $Libra launch resembled a “rug pull” – where promoters draw in buyers, only to stop trading activity and make off with the money raised from sales.

The presidential office insisted that Milei was in no way involved in the development of $Libra and announced that the Anti-Corruption Office would determine if the president had acted improperly.

Milei himself defended deleting his post, saying that at the time he did not know “the details of the project and after learning about it, I decided not to continue promoting it”.

Opposition politicians, however, have not been placated by the statements, threatening to start impeachment proceedings against Milei.

While political analysts point out that the opposition is unlikely to get the votes needed for an impeachment trial to go ahead, the scandal threatens to divert Milei’s attention away from his radical reform agenda.

A federal judge has been tasked with deciding whether fraud allegations brought against the president by a number of plaintiffs should go ahead.

In his TV interview, Milei appeared combative, stressing that he had “nothing to hide”.

He also said that those who had invested in $Libra had done so “voluntarily” and knew of the risks.

“It’s like playing Russian roulette and getting the bullet.”