Milei investigated by federal prosecutors for 'cryptogate' scandal

Argentine federal prosecutor Eduardo Taiano has opened a formal investigation against President Javier Milei and a group of businessmen in relation to the scandal that arose following the suspicious 'promotion' of the cryptocurrency $Libra, behind which an international mega-scam is said to be hidden. The newspaper La Nacion reported. The crimes alleged by the prosecutor are fraud, influence peddling, abuse of office and corruption.

In a post on X Milei had praised the launch of the financial instrument - presented as part of a private project to "finance small businesses and startups in Argentina" - generating a rush of purchases and a subsequent increase in value of 1,000%, only to backtrack shortly thereafter, causing a collapse in the value of the currency. The speculative movement born from Milei's behavior had cost over 100 million dollars in losses to hundreds of investors around the world. Other investors had managed to buy the token when it was worth zero to resell it at record prices with profits of millions of dollars.

The prosecution has already asked the Argentine Central Bank and Google to provide information to reconstruct the affair which has already caused a political earthquake with the opposition to the ultra-liberal president who could ask for impeachment.

The prosecutor has entrusted the investigation to the cyber crimes pool.