Milei is denounced in the USA after the ‘cryptophyse’ scandal

The image of Milei has fallen in just hours after having publicized the cryptocurrency $ Pound through their social networks. The promotion of the Head of State, in which reference was made to the ‘Liva La Libertad Project’, triggered interest in the virtual currency, whose value later collapsed, leaving thousands of ruins, both in Argentina and others in others countries. Several users claimed to have lost all their savings. The president said later that he was misinformed when making the promotion.

The matter, which on Saturday seemed to a simple error, has acquired Dantesque dimensions, and has affected to such an extent the credibility of the president that in Argentina the press has called it ‘crypto-gate’, in reference to the political scandal that destroyed the image of the former US president Richard Nixon. In the country of tango, opinions are divided between those who believe that the Head of State was deceived and who consider him an accomplice of a millionaire scam.

The impact of the controversy on the image of the Executive was evidenced on Monday, when a Public Opinion Consultant survey registered a drop in the president’s approval. After the scam of the cryptocurrency, its negative image grew to exceed 48%.

Argentine actions also experienced a collapse. This week the Merval, the main index of the Buenos Aires Stock Exchange, dawned with a fall of almost 4% after the controversy of $ Pound. A few days after the president’s trip to the United States, there is concern at Casa Rosada. Hours ago, the Department of Justice and the Federal Investigation Office (FBI) received a law the promotion of the president. Hayden Davis weekend, who had met with Milei two weeks ago at Casa Rosada, said he was an advisor to the Argentine head of state.

Complaints in Argentina

Last Sunday there were more than 100 criminal complaints filed against the president for promoting the failed investment. The cause against Milei has now been in the hands of the Argentine judge María Romilda Servini de Cubría, as reported by the media. Specifically, it is investigated as a possible necessary participant due to alleged scam and illicit association.

On the other hand, in the last hours it was also requested that a commission be formed in the Argentine Congress with the aim of investigating the matter, in addition to asking for political judgment to be initiated by the President. The reason is that the Argentine law does not allow the head of the Executive to promote private companies with which it has some type of linking. Hence the insistence of the Government in which the president “was not internalized” of the project, something that is difficult to defend having counted from the leaders’ previous meeting with the creator of $ Pound.

It should be remembered that, four years ago, Milei had already made the promotion of another cryptocurrency, called Coinxwhen he was a deputy. In an interview, the then legislator admitted to having received money in exchange for advertising.

Silence in the Casa Rosada

As soon as the financial hecatombe occurred, the Argentine head of state quickly erased his promotion messages and acknowledged not being informed of the project when giving him massive dissemination. In later days, it has not yet pronounced in this regard and its unusual silence on social networks has called the attention of the press.

The Casa Rosada designs, at this time, a strategy that allows us to reverse the scandal that Argentine actions have dropped in the market. It should be remembered that the virtual scam arrives at a very bad time. In October the Argentines will go to the polls to choose legislators and this stain in the reputation of the Casa Rosada seems to be the greatest challenge that the president faces since his arrival to power.