Argentine president denies promoting LIBRA memecoin scam

Argentinian president Javier Milei rejected the allegations that he approved the Memecoin balance, which recently saw a dramatic pump and dump, leaving investors heavy losses.

As Tier10k reported on X, Milei said he only shared information on the token and never encouraged people to invest. He minimized the impact on Argentina, saying that only a handful of local investors – about four or five – were affected. He noted that most of the traders involved came from China and the United States

Unlike reports that 44,000 investors were affected, Milei said the actual number was closer to 5,000, most of whom were experienced merchants who included risks. According to him, the question of the balance was a private financial affair rather than something involving the government.

Milei also said that Hayden Davis, one of the figures behind Balance, had propose Creation of a financing structure for entrepreneurs who find it difficult to obtain funding due to informal economic conditions. He saw the initiative as something positive and simply helped pass the word.

Despite the defense of his actions, Milei recognized the political reaction and the lessons he learned from the controversy.

“I made no mistakes because I acted in good faith. But when I look at political repercussions, I realize that I have something to learn. I need to understand that after having become president, I continued to act as the same Javier Milei as before. Unfortunately, this situation shows me that I have to raise my filters and not make myself so accessible. »»

Argentinian president Javier Milei

Balance attracted enormous attention after Milei mentioned it publicly, which contributed to its rapid price rise from zero to more than $ 4. Its value quickly fall less than 50 cents leading to market manipulation speculation. The first investors would have conceded more than $ 100 million, leaving subsequent purchases with significant losses.

Political tensions increased in Argentina following the incident, and opposition leaders call for Milei’s resignation for having allegedly deceived the people. The country’s anti-corruption office is currently carrying out a separate survey in addition to a probe Directed by the federal judge María Servini.

The S&P stock index fell About 5% due to the scandal, which also shook the financial markets of Argentina. Even if Milei insists that he did not hurt anything, the debate is still strong and his administration is more excessive.