Argentine judge investigates fraud case against President Milei over crypto promotion
A judge in Argentina was selected Monday to investigate allegations of fraud against President Javier Milei for his brief promotion of a cryptocurrency whose value collapsed within hours of its launch last week.
Milei and his office denied involvement with creators of the $LIBRA cryptocurrency, saying he initially drew attention to it Friday as an entrepreneurial project that might benefit Argentina but learned more about it later and then withdrew his support.
Lawyers in Argentina filed fraud complaints against the libertarian President on Sunday. The case was assigned Monday to Judge María Servini, head of Federal Court No. 1 in Buenos Aires. She doesn't have a deadline to finish investigating the allegations.
In a tweet Friday evening that coincided with the launch of the $LIBRA crypto coin, Milei said that it was aimed at 'encouraging economic growth by funding small businesses and startups.'
It enjoyed a brief spike in value above $4 billion in market capitalization, although its value began to decline amid comments of critics that it could be a scam. Milei deleted the post a few hours later as the value of the cryptocurrency was collapsing in a downturn that caused millions of dollars in losses to many of its new investors.
The coin, developed by KIP Protocol and Hayden Davis, could be obtained by accessing a link that directed users to a website called vivalalibertadproject.com, referring to the well-known phrase 'Viva la libertad!' that Milei uses to close speeches and messages on his social media.
The president's office said in a statement that Milei was not involved in any stage of the cryptocurrency's development and decided to remove his post to avoid speculation and limit further exposure, following the public reaction to the project's launch.
'The president shared a post on his personal accounts announcing the launch of KIP Protocol's project, as he does daily with many entrepreneurs who wish to launch projects in Argentina to create jobs and attract investments,' the president's office said.
After deleting the post, Milei said on X he was unaware of the details of the cryptocurrency, and accused his political opponents of trying to exploit the episode.
'I was not aware of the details of the project, and after getting informed, I decided not to continue promoting it (which is why I deleted the tweet),' he said.
His office also said that the country's Anti-Corruption Office, which operates under the executive branch, would investigate the case.
Jonatan Baldiviezo, a lawyer and one of the plaintiffs, said Sunday that the plaintiffs allege that Milei's actions were part of an illicit association to commit 'an indeterminate number of frauds' in the episode.
'Within this illicit association, the crime of fraud was committed, in which the president's actions were essential,' he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
18 hours ago
- Reuters
Argentina set for M&A boom under Milei, with energy in focus, PwC says
BUENOS AIRES, June 9 (Reuters) - Argentina's mergers and acquisitions market could grow significantly in the coming years if President Javier Milei's economic reforms continue, Juan Tripier, director of M&A and corporate finance at PricewaterhouseCoopers (PwC) Argentina, told Reuters. Investors have shown renewed interest in Argentina following Milei's measures, which include sharp reductions in inflation and public spending, a restored fiscal surplus, and relaxed foreign exchange controls. "Two, three years ago you contacted an international company, an international investor, and Argentina was a bad word. That has changed since Milei became president," Tripier said in an interview with Reuters in Buenos Aires. "There's a lot of excitement," he added. "That excitement is both shared by international players, or international investors, and local players." Tripier said that within three to five years Argentina could beat previous peak M&A years, when there were 120-150 transactions annually, with diversified activity across sectors such as agribusiness, food, and infrastructure. Historically, Argentina's deals involving multinational companies were dominated by energy, mining, and technology, though foreign investors are now expected to expand into other industries. In 2024, Argentina recorded 99 M&A deals, the highest since 2019, with transaction values reaching $8 billion—the largest amount since 2017, PwC data showed. Despite the surge, investors remain cautious due to lingering dividend repatriation restrictions and high country risk. "Now you talk to investors abroad, they analyze opportunities. Before they would say: No, Argentina is out of the spectrum. Now they analyze the investment, they say: I want to wait and see if the economy really consolidates," Tripier said. Vaca Muerta, the world's second-largest unconventional gas reserve and fourth-largest oil reserve, located in the province of Neuquén, is one of Argentina's main attractions. "With the increase in investments not only in upstream development but also in infrastructure—pipelines, processing plants, and liquefied natural gas projects—we expect realignments aimed at diversifying producers' exposure, with some buying and others selling," said energy lawyer Jose Martinez de Hoz of Martinez de Hoz & Rueda. Daniel Dreizzen, former Secretary of Energy Planning and director at consultancy Aleph Energy, projects $11.553 billion in hydrocarbon exploration investments for 2024. "There's been a lot of M&A activity. At Aleph, we're talking to investors who are very interested in Argentina—obviously with caution given our track record—but they're looking at opportunities," Dreizzen said.
Reuters
19 hours ago
- Reuters
Argentine leader Milei licking his chops ahead of October elections
BUENOS AIRES, June 9 (Reuters) - Argentina's firebrand right-wing President Javier Milei has largely tamed runaway inflation with a ruthless austerity plan and he aims to solidify power when his party and its allies take on a divided opposition in legislative elections in October. The trash-tweeting, shaggy-haired economist, who famously handed tech billionaire Elon Musk a chainsaw at an event in Washington earlier this year, has overseen a steady dollar-peso peg but relies on legislative allies in Congress to pass his agenda. Many of the changes he has implemented have been through presidential decrees, like his ideological ally, U.S. President Donald Trump, who called Milei his favorite president. Voters will choose about half the seats in the lower chamber of Argentina's Congress and a third of the upper Senate on October 26. A big victory would not give Milei a legislative majority, but it would offer him leverage to make deals to sell off government-owned companies, cut social spending, change tax and labor policy and embrace social conservatism. That plan is in stark contrast to the program of the parties that are the ideological descendants of General Juan Peron, who ruled the country from 1946-1955 and 1973-1974, and his wife Evita. Their governments nationalized industries, unveiled pro-labor policies and rolled out social programs including free health care. The economic stability spurred by Milei, who took power in late 2023 and quickly slashed spending as part of a shock therapy program to pull the South American country out of a deep crisis, has not translated into across-the-board improvements. Prices of basic goods like jeans and tennis shoes are reportedly double what they are in other parts of the Americas. Pensioners continue to protest the cost of living, and anger over the relatively poor salaries of healthcare workers at a respected pediatric hospital has turned into a months-long saga. Nearly 40% of Argentines remain in poverty, and many of them reject Milei's policies. "I'm not a Peronist, but I'll vote for them because I'd vote for anyone before Milei," said Jorge, a 42-year-old "cartonero" who collects cardboard for recycling, an extremely poor living. The man, who declined to give his last name, said one of his four children was treated at the pediatric hospital where staff are protesting. Posing another threat to Milei's popularity is the possibility that he may in coming months have to further tighten economic policy to meet the terms of a $20 billion International Monetary Fund loan that has boosted Argentina's reputation among investors, whose dollars the country desperately needs. Up for grabs in the election is the vast province surrounding the capital, Buenos Aires, which is the geographic heart of Peronism and home to 40% of the country's voters. A government source told reporters Milei has vowed to defeat Peronist Governor Axel Kicillof there. Milei's candidate unexpectedly placed first in a recent Buenos Aires local election, and consulting firm Observatorio Electoral shows Milei's Libertad Avanza party with a slim 37%-36% advantage over the center-left Peronists. Nationally, 42% of voters favor Milei against 23% for the Peronists. Beating the standard-bearers of Juan Peron's legacy would have seemed impossible a few years ago, but with inflation down to a projected 30% this year, from 118% last year, and Milei credited with cutting corruption, some voters are ready to give the political firebrand more power. "I'll vote for Milei again because he's achieved a degree of normality in the economy," said Federico Segovia, a 22-year-old university student who blamed the last Peronist president, Alberto Fernandez, for leaving the economy in disastrous shape. A recent survey by the consulting firm Synopsis found that the share of those who viewed Milei positively rose to 43.4% in May from 40.9% in April. Perhaps the biggest wind in Milei's sails comes from the power struggle that has pitted Kicillof and his one-time mentor, former President Cristina Fernandez de Kirchner. Kicillof, who served as economy minister in Fernandez de Kirchner's government from 2013 to 2015, is expected to run for president in the 2027 election. "The rupture is inevitable," a Peronist source told Reuters. The two opposition politicians are still debating whether they will join forces for the congressional elections. "If there is no agreement for the legislative elections and Peronism is divided, La Libertad Avanza will win the elections in the province of Buenos Aires," the source said. Milei, meanwhile, has patched over divisions with his closest ideological neighbor, agreeing to offer a combined list of candidates with the center-right PRO party. The Peronists make up the largest party in Congress and have dozens of governors and mayors across the country. Observatorio Electoral pollster Julio Burdman, however, thinks that power base won't be enough to stop Milei's forces. "The ruling party has all the conditions" to win the most votes, he said. "I can't imagine any other result."
The Independent
20 hours ago
- The Independent
Argentina's Javier Milei calls Spanish Prime Minister ‘local bandit' in latest war of words
Argentina 's President Javier Milei has ignited a fresh diplomatic tiff after verbally attacking Spanish Prime Minister Pedro Sanchez at a recent event in Madrid. During the Madrid Economic Forum on Sunday, Milei, without directly naming Sanchez, called for "clobbering the local bandit." The comment recalls a similar incident last year that led to a diplomatic fallout between the two nations. Sanchez's office has so far declined to comment on the remarks. Milei, a libertarian and former TV pundit, assumed office in late 2023 and has become known for his unconventional stances and dramatic gestures, including once smashing a pinata of the central bank on live television. In May 2024, Milei called Sanchez's wife Begona Gomez"corrupt" at another event in Madrid. The comment led to a diplomatic spat, with the Spanish government withdrawing its ambassador from Buenos Aires for several months when Milei refused to apologise. Milei subsequently doubled down calling Sanchez "arrogant", "totalitarian" and a "coward", although Argentina kept its ambassador in Madrid.
