Argentinian President Javier Milei became embroiled in a scandal after promoting the cryptocurrency $LIBRA, which suffered a collapse in its value. In response to allegations of fraud, Milei deleted his publication. He claimed to have acted in good faith and spread the cryptocurrency without promoting it, refusing to take responsibility for those affected.
The U.S. Department of Justice has started an investigation into the case of the cryptocurrency $LIBRA, following a report filed against Milei and others involved. The complaint, lodged by the Argentine law firm Moyano & Asociados, mentioned Hayden Mark Davis of Kelsier Ventures, Julian Peh, Mauricio Novelli, and Manuel Terrones Godoy as part of the scheme. Davis and Peh were identified as responsible for the launch of $LIBRA, while Novelli and Terrones Godoy were reported to have been intermediaries.
The initial investigation is being handled by the Fraud Section of the Criminal Division of the U.S. Department of Justice. The U.S. Securities and Exchange Commission has also been informed about the case. In Argentina, federal prosecutor Eduardo Taiano has initiated an investigation to clarify the details of the launch of $LIBRA and the role of those involved.
Milei's publication in support of the cryptocurrency triggered a political crisis in the Argentine government. A rise in its price was followed by an abrupt drop, resulting in million-dollar gains for some investors. The perception of Milei's government and its ability to attract foreign investors is being questioned at a crucial moment in negotiations with the International Monetary Fund. The situation raises questions about the future of his administration and its commitment to the Argentine economy.
