- Javier Milei faces indictment calls after promoting a piece of memes on social networks.
- The Argentine President approved $ Balance Coin, which increased by value before crashing a few hours later.
- Opposition politicians called the incident as “unprecedented scandal”.
Argentinian president Javier Milei faces a legal investigation and dismissal calls after promoting a cryptocurrency that quickly collapsed.
On Friday, Milei approved the piece even $ Bibla in social networks publications. He said it would stimulate the country’s economy by funding small businesses and entrepreneurs.
Milei’s approval sent the almost zero token to more than $ 4, before falling less than 50 cents a few hours later after the posting, Reuters reported.
Observatorio Del Derecho at Ciudad, an NGO in Argentina, said that some 40,000 people had been affected, with losses over $ 4 billion.
The main stock market index of Argentina closed more than 5% less on Monday.
The same parts are types of cryptocurrencies which are sometimes based on jokes on the internet, such as Doge. Before his inauguration, President Donald Trump and First Lady Melania Trump even launched their own pieces – $ Trump Coin and $ Melania Coin. The pieces sparked anger in the world of cryptography, the experts criticizing the trumps to make fun of the sector.
Lawyers in Argentina have filed fraud complaints before the criminal court during the weekend. Some have hypothesized that the case against Milei could be classified as a “carpet traction”, when the promoters of a room attract buyers, but then cease to negotiate before it crashes to pocket some products.
Jonatan Baldiviezo, one of the complainants, told the Associated Press that the president’s actions meant that a “fraud crime had been committed”.
A judge was assigned Monday to investigate the role of case.
The main coalition of Argentina’s opposition said that it was going to go ahead with its efforts to dismiss Milei, calling for its involvement in the medal of an “unprecedented scandal” in a post X.
On Sunday, Milei’s office said in a statement on X that the president “shared an article on his personal accounts announcing the launch of the KIP protocol project, just as he does daily with many entrepreneurs who wish to launch a project in Argentina To create jobs and get investments.
“Not having been part of a stage of the development of the cryptocurrency, after the repercussions that the launch of the project had and to avoid speculation and not give it additional dissemination, he decided to remove the position . “
Kip Protocol said that on X was involved in the distribution of project funds to companies in Argentina and had no role with the Balance Coin itself.
Fallout Meteora
Ben Chow, the co-founder of Meteora, the platform behind $ Balance, resigned after the controversy, according to a press release on X of “Meow” on Tuesday.
“Meow” co -founded Meteora and is behind Jupiter, which is called “one of the largest decentralized commercial platforms and one of the most active governance communities in crypto”.
The press release indicates that Chow had “shown a lack of judgment and care of some of the main aspects of the project (given its current size and reputation) during the last two months” and had “chosen to resign”.
“Meow” also declared in the press release that “person to Jupiter or Meteora has committed negotiations of initiates or financial acts, nor received any inappropriate tokens”.
Fenwick & West law firm has been hired to investigate and independently publish a report, added “Meow”.
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