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Cryptocurrency Promoted by Milei Under Government Scrutiny After Fraud Suspicions
In recent days, Argentina has plunged into yet another crisis. The cryptocurrency promoted by Javier Milei has become the target of a government investigation, officially launched on February 15, 2025.
As a result, suspicions of fraud and market manipulation have intensified. After all, following a meteoric rise recorded on February 8, 2025, the digital currency experienced a staggering drop on February 12, 2025.
In light of this scenario, the opposition wasted no time and, on February 16, 2025, filed a request for impeachment against Milei in the National Congress.
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Meanwhile, investors remain anxious, awaiting further information about the investigation conducted by the National Securities Commission of Argentina (CNV) and the Central Bank of the country.
According to the newspaper Clarín, the cryptocurrency, dubbed “Viva La Libertad Project”, was widely promoted on Milei’s social media between February 5 and 7, 2025.
The report indicates that the Argentine president advertised the currency as a symbol of financial freedom and decentralization, encouraging his followers to invest.
Milei’s Cryptocurrency: An Investment or a Financial Scheme?
To begin with, the Argentine government decided to investigate the cryptocurrency associated with Milei after alerts from the Argentine Central Bank issued on February 14, 2025.
This project, known as “Viva La Libertad Project”, attracted global attention. After all, the president himself publicly encouraged investment in this digital currency.
However, according to La Nación, the currency surged over 320% between February 8 and 10, but collapsed on February 12, losing 75% of its value in a matter of hours.
As a result, thousands of investors claim to have suffered multi-million dollar losses, raising suspicions of a possible pump and dump scheme.
The CNV confirmed that the cryptocurrency was not regulated in the country and that, up to that point, there were no official records of the project in the Ministry of Economy.
As if that weren’t enough, the Financial Times published an analysis pointing out that the project’s structure had characteristics similar to financial pyramid schemes, which increased pressure on Milei.
Meanwhile, the economic crisis in the country was rapidly intensifying.
During the same period, the Consumer Price Index (CPI) for January 2025 indicated an accumulated inflation of 21.5%, as reported by the National Institute of Statistics and Census (INDEC).
The population was already facing difficulties, and the controversy over the cryptocurrency only heightened public discontent.
Opposition Requests Impeachment and Increases Pressure on Milei
Consequently, the scandal grew rapidly.
The opposition did not take long to react. The Peronists announced an official impeachment request against Milei on February 16, 2025.
According to Página 12, lawmakers claim that Milei used his position to promote an unregulated financial asset, which could constitute abuse of power and market manipulation.
In addition, in recent hours, public pressure has increased drastically.
Meanwhile, the New York Times highlighted that the crisis also affected Argentina’s international reputation, raising doubts about the transparency of Milei’s government in the financial sector.
Even in the face of increasing pressure, Milei and his allies continue to deny any wrongdoing.
In an official statement broadcast by Argentine Public Television on February 16, the president labeled the accusations as a “desperate attempt by the old politics to block economic reforms”.
However, up to that moment, he had not presented evidence proving the legality of the project.
How the Crisis Could Affect the Cryptocurrency Market in Argentina
Currently, Argentina has established itself as one of the countries with the highest cryptocurrency adoption in Latin America.
According to the report by Chainalysis, published in December 2024, the country ranks 13th globally in digital asset adoption, driven by the economic crisis and depreciation of the peso.
However, the case of Milei’s cryptocurrency could drastically change this scenario.
If authorities confirm the suspicion of fraud, it is certain that the government could tighten regulation in the sector.
As a consequence, cryptocurrencies associated with political figures could face severe restrictions.
Sources like Reuters and Bloomberg have already indicated that the Securities Commission of Argentina is studying new rules for the crypto market.
According to experts, a bill could be presented to Congress as early as March 2025.
In addition, the IMF (International Monetary Fund) expressed concern about the lack of cryptocurrency regulation in the country, urging the government to take swift action to avoid further crises.
Meanwhile, investors are anxiously awaiting the next steps of the investigation.
If the allegations are proven, the future of cryptocurrencies in Argentina could undergo significant changes.
Furthermore, the repercussions of this controversy could impact the global market, undermining investor confidence in projects lacking clear regulation.
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