Argentina's President Milei Rejects Crypto Fraud Allegations Amid $Libra Crash

In the face of mounting controversy over a cryptocurrency crash, Argentine President Javier Milei is standing firm against allegations of fraud stemming from his endorsement of the now-defunct $Libra. Following a social media post that briefly sparked a surge in interest before a devastating collapse, Milei asserts he acted in "good faith," likening the situation to gambling risks. A federal judge is set to determine the validity of fraud claims against him as political tensions rise.

Milei responded to accusations regarding the cryptocurrency $Libra during a television interview, denying that his social media post was an endorsement and stating he merely shared information. The crypto coin's value skyrocketed briefly after his mention, but swiftly plummeted, leaving many investors in significant financial jeopardy. Critics have suggested that the launch mirrored a "rug pull" scam, a situation where promoters vanish after attracting buyers, leading to accusations of malpractice directed at the President.

Milei has acknowledged deleting the tweet after a few hours, claiming ignorance of the project's specifics at the time. Nevertheless, the incident has prompted fierce backlash from political foes, who are calling for impeachment proceedings against him—though analysts suggest that gaining the necessary votes for a trial may be challenging.

The President remains steadfast, advocating that investment in $Libra was voluntary and fraught with risks, likening it to "playing Russian roulette." The growing scandal, however, threatens to overshadow his ambitious reform agenda and draw significant political focus in the coming days.