Argentine President Javier Milei has denied being involved in a cryptocurrency rug pull after the collapse of the Libra cryptocurrency over the weekend.
Milei dismissed investors’ complaints on Monday, saying that he acted “in good faith.” He also compared investors actions to those of gamblers.
“If you go to a casino and lose money, what’s there to complain about when you knew the risks?” Milei asked.
The president mentioned the Libra altcoin in a social media post on Friday. The coin immediately rose in value before dropping, causing severe losses for the majority of investors.
A judge will decide whether the president should face fraud charges over the incident.
In an interview with Argentine TV channel Todo Noticias on Monday, President Javier Milei discussed the Libra incident after staying unusually quiet on social media over the weekend. He insisted that his post on X, which included a link to a site selling, did not endorse the site.
“I didn’t promote it, I merely shared it,” he told Todo Noticias’ Jonny Viale.
Milei’s post, which he deleted after just a few hours, drew heavy criticism not only from his political rivals in Argentina. The presidential office insisted that Milei had no involvement in the development of Libra. It also announced that the Anti-Corruption Office would investigate whether the president had acted improperly.
Milei defended deleting his post, explaining that he did not know “the details of the project” at the time and decided not to continue promoting it after learning more.
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A federal judge will determine if fraud charges should proceed
Opposition politicians, however, remain unsatisfied with his statements and have threatened to start impeachment proceedings against Milei. Consequently, the scandal threatens to divert Milei’s focus from his radical reform agenda.
A federal judge will decide whether fraud allegations brought against the president by a number of plaintiffs should proceed. In his TV interview, President Javier Milei appeared combative, emphasizing that he had “nothing to hide.” He also stated that those who invested in Libra did so “voluntarily” and were aware of the risks.
This isn’t the first time a celebrity endorsement has led to considerable investor losses in the cryptocurrency space.
One notable example of celebrity endorsement leading to significant losses is the case of Hawk Coin. The altcoin project made headlines when it enlisted the Hawk Tuah girl as its spokesperson, using her popularity to investors.
Unfortunately, the coin failed to live up to its promises. Furthermore many investors found themselves facing considerable financial losses as the project’s value plummeted. The celebrity endorsement, rather than boosting confidence, ultimately became a symbol of the project’s downfall.
Another example is the FTX Exchange, which saw endorsements from several high-profile celebrities, including Tom Brady, Gisele Bündchen, and others, as part of a marketing campaign led by FTX’s founder, Sam Bankman-Fried.
These endorsements initially helped boost the exchange’s visibility and attract investors, but when FTX collapsed amid allegations of fraud and mismanagement, many of those who had followed the celebrities’ endorsements suffered severe financial losses.
The fallout from the FTX scandal highlighted the risks of celebrity-backed investments, particularly in the volatile cryptocurrency space.
