"The largest Kidalovo in history"

Argentine President Javier Miley advertised in social networks Memcoin $ Libra. Krypt (expectedly) collapsed. Now Milea is accused of fraud

Argentine lawyers Jonathan Baldiveso and Marcos Selei sued the president of Argentina Havier Miley, accusing him of fraud due to the fact that he advertised $ libra, the price of which took off sharply and then collapsed, reports Associated Press on February 17. Baldiveso told the agency that the actions of the president of Argentina were “essential” in a crime.

After the tweet of the president of Argentina, the price of memcin in half an hour took off by 1300% - and rapidly fell

On February 14, Javier Miley published on the social network of the X message in which he advertised the cryptocurrency $ Libra, writes AFP. Miley said that this “private project” was designed to “stimulate the growth of the Argentinean economy by financing small businesses and entrepreneurs of Argentina.” “The world wants to invest in Argentina. $ Libra, ”the record said. There was a link to the website VivalibertadProject.com - the name refers to the phrase "Viva La Libertad!" (“Long live freedom!”), Which Miley ends his speeches and messages in social networks. A few hours later, Miley deleted Twit, saying: "I did not know the details of the project, but when I learned, I decided not to continue its advancement." The President of Argentina noted that he was “clearly not connected” with a private company that launched cryptocurrency.

The Token $ Libra was launched on SOLANA, a blockchain with high transactions and low commissions, which made it popular among memcoirs traders. During the launch, the cost of cryptocurrency increased significantly - in half an hour by 1300%, writes the Argentine publication La Nacion. At the peak, the capitalization of the coin amounted to 4.6 billion dollars, but then the price decreased sharply, as is often the case with memcoirs. Investors suffered millions of losses. “Within a few minutes after launch, several large holders began to eliminate $ Libra for millions of US dollars,” said the author of The Kobeissi Letter, a newsletter analyzing the global capital markets. The capitalization of the coin at the time of publication of the note was less than 95 million dollars.

The launch of cryptocurrencies was called the "global scam." The office of the president of Argentina began an investigation

Argentinean economists and cryptocurrency experts called the launch of the $ Libra fraudulent scheme Rug Pull (you can translate how to “throw” ) - this is when the developers launch token, attract investors, and then refuse the project and quickly cash out the earned money. Digital security expert Javier Smaldone, known for the exposure of financial pyramids, called the launch of the $ libra “global scam”. “It turned out that the benefit received is about 107 million dollars. Perhaps more, ”he said AFP.

The Presidential Administration of Argentina said on February 15 that Javier Miley did not participate in the development of cryptocurrencies, and Twit was removed to avoid speculation and limit the further promotion of the project. “The president shared in his personal accounts a message about the launch of the KIP Protocol project, how he does it every day, [promoting] many entrepreneurs who want to launch projects in Argentina to create jobs and attract investments,” the president’s office said.

The presidential administration emphasized that Miley decided to immediately attract the corruption control department, "to determine whether the unlawful behavior of any of the members of the country's government, including the president himself, took place." He also ordered to create an investigative group in the president’s office in order to conduct an “urgent investigation” of $ libra cryptocurrency and determine everyone who participated in this. “All the information collected during the investigation will be transferred to the judicial authorities to determine whether the company or private individuals related to the Kip Protocol project have committed any crimes,” the administration noted. At the same time, Milea’s office admit that recently the president and members of his team met with Kip Protocol representatives in the Presidential Palace in Buenos Aires.

One of the authors of the cryptocurrency project claims that Miley did not work on this

After the collapse of the cryptocurrency, the American businessman, the head of the Kelsier Ventures, Hayden Mark Davis, who was responsible for the launch of a memcoid, said that he was Milea's adviser and "works with him and his team on much larger tokenizations and really steep things in Argentina." Davis accused of falling the cost of the coin of Havier Miley. “Despite the obligations previously taken, Miley and his team unexpectedly changed their position, abandoning support and deleting all previous messages on social networks,” Davis said.

The president’s office said that Davis "did not have and have no connections with the Argentine government." At the same time, according to Bloomberg, Miley met with Davis in January, since the head of Kelsier Ventures was supposed to participate in the creation of digital infrastructure for $ Libra. According to the agency, Miley found out about the project a few months ago, when the trader, with whom he talked before his presidency, introduced him to the head of Kip Protocol Julian Peeh. But on February 15, Miley denied that he knew anything about the project.

Among those who suffered losses due to launching Libra cryptocurrency, as Bloomberg writes, was an investor, founder of the Barstool Sports sports company Dave Portn. He called the incident “the largest Kidalov in history”, although he noted that he was able to maintain part of the invested funds. The tailor said that Davis invited him to participate in the launch of the project, and also offered him to interview Miley. According to Bloomberg, “everything went awry” after, according to the tailor, Davis gave him six million coins of $ Libra, but asked not to talk about the gift to subscribers in social networks. As a result, the tailor returned the donated coins, and after Twitte Milea invested in the project. “I bought like any fool. I did not buy anything myself until Miley wrote on Twitter, ”the tailor said.

Hayden Mark Davis denies that the launch of $ Libra is a fraudulent Rug Pull scheme, writes La Nacion. “I don't want to be an enemy number one. I'm not getting out of this. My life is at risk, ”he said in an interview with Journalist and Utuber Stephen Findseisen, known as Coffeezilla. Davis said that "Miles did not earn any money on this." He claims that the President of Argentina will give a television interview in which he will support $ Libra, after which the quotes may go up. Davis noted that he has 100 million US dollars to inflict liquidity in the “airbag”, but the money is “waiting in the wings”.

Davis added that the trader Maurisio Noveli, who has been familiar with Miley from at least 2021, participated in the launch of $ Libra. Kip Protocol denies that Novelli participated in the project. According to Davis, also among the project participants - entrepreneur Manuel Terrones God, who, as La Nacion notes, was previously accused of digital investment fraud.

Miles' opponents require impeachment. But perhaps nothing threatens the president

The crisis was used by the political opponents of Havier Miley. Former President of Argentina Kristina Kirschner, who had previously received six years in a prison in the corruption case, called Milea a "crypto -mesh". The leader of the Civil Coalition party Maximiliano Ferraro called on the parliament to conduct his investigation and determine the responsible ones. Some politicians threatened Miles with impeachment, but, as Bloomberg writes, the parliament is unlikely to vote for such a decision.

According to Bloomberg, miles can avoid serious political consequences due to the erupted cryptocurrency scandal, since inflation is reduced in Argentina, salaries are growing, and the economy is developing. According to surveys, the President’s approval rating has been holding at 47%for several months, while the rest of Argentina’s political forces are less popular than he is.