Argentine congressman accuses Milei of fraud and says cryptocurrency case is a 'serious institutional crisis'
Carlos Castagneto stated that the UxP bloc will initiate an investigation process based on an article that provides for political trial for "committing a crime".
247 - Argentine Peronist national deputy Carlos Castagneto, of the Union for the Fatherland (UxP), accused President Javier Milei of having "knowingly" participated in the fraud scheme involving the Libra cryptocurrency ($LIBRA). In statements to the Argentine press, Castagneto stated that Milei acted consciously in promoting the digital token, which, according to him, constitutes "misconduct in his duties" and "the commission of a crime."
"Milei, along with his friends, intended to defraud thousands of people," declared Castagneto, referring to the cryptocurrency's launch, which experienced a meteoric rise in value followed by an abrupt fall, raising suspicions of market manipulation. The congressman stated that the UxP bloc will initiate an investigation based on Article 53 of the Argentine Constitution, which provides for political prosecution for "misconduct" or "committing a crime."
The scandal began last Friday (14), when Milei promoted the cryptocurrency Libra on her social networks. The announcement caused the asset's value to momentarily skyrocket, reaching a peak of US$ 4.978 (approximately R$ 28.512), according to the AFP news agency. However, within a few hours, the value of the digital currency plummeted, leading experts to warn of a possible "rug pull" — a practice in which cryptocurrency developers artificially inflate its value in order to later sell their stakes, leaving investors with losses.
The situation took a more serious turn after it was revealed that Milei had met in October 2024 with Julian Peh, CEO of KIP Protocol, the company responsible for creating the Libra token. The meeting took place at the Hotel Libertador, owned by businessman Eduardo Elsztain, who has a history of ties to the president. In addition to Peh, government spokesperson Manuel Adorni and Mauricio Novelli, co-founder of Tech Forum, were also present.
“There is a history of the President receiving figures from the world of cryptocurrencies. It is already clear who they are, so we are witnessing an event of very significant institutional gravity, which affects not only Milei, but also the country,” Castagneto considered.
The opposition argues that Milei's involvement in promoting a highly volatile asset without adequate regulation constitutes a serious irresponsibility.
