The main dishes to remember:
- $ Libra was promoted by President Javier Milei, causing a peak but crashed later.
- Investors have lost around $ 250 million, among the allegations of a “carpet shooting” scam.
- They are accused of manipulating the market, and the opposition parties call for an investigation and a potential dismissal.
- The debates of financial regulation surface while Argentina is struggling with challenges of cryptographic governance.
- The former Crypto endorsements date back to a meticulous examination on the financial links of Milei
Approval adjustment CAA 4 – hero
On February 14, 2025, President Javier Milei of Argentina approved the $ balance cryptocurrency on X. The approval led to a quick price explosion which brought the price of the token from a handful of cents to almost $ 5. The rally has attracted thousands of investors who seek to take advantage of the media.
But a few hours later, the price landed, destroying millions of dollars of investors. Some 44,000 investors have been affected, losses estimated at around $ 250 million. The abrupt decline inspired indignation, and many qualified the scam the project.
A demonstrator has a banner representing President Milei.
Fraud and market manipulation fees
But after investors and analysts and analysts have decreed $ balances as a “carpet shooting” scam. It is essentially a Ponzi program where the developers artificially inflate the cost to make profits before selling their share and others are found with worthless investments.
Milei quickly deleted his post and said he was not directly involved in the project. However, his approval played a disproportionate role in conducting the price, for which he was accused of deceiving investors. Detractors argue that when an exercise president guarantees for a financial product, he inflates it more than the market in this product should be inflated and attracts involuntary investors.
New York Times Yang 03 20 23 Political implications and calls for investigation
The scandal attracted bitter denunciations from Argentinian opposition politicians. Legislators and economists demanded an official investigation, with a demanding indictment procedure against Milei.
Opposition legislators say Milei’s action is a form of market manipulation and a violation of public confidence. If this supposition is validated, the political benefits for him could be serious, with the withdrawal of his functions as a possibility. The scandal also threatens to trust the financial management of Argentina at a time when the country works to manage economic volatility and inflationary pressures.
History of the controversy of cryptography
This is not the first cryptocurrency scandal involving Milei. As a member of the Congress in 2021, he plugged Coinx World, a commercial site which then gave up as Ponzi program. The company distorted its ability to reach yields above the market via algorithmic trade, then defrauded investors until regulators closed it. Milei is linked to bankruptcy cryptographic companies, and that scares people of the way he will manage funds and politicians will promote high -risk specifications. The Argentine economy is not entirely stable, people are increasingly wary of the financial risks associated with government agents.
Risk problems and investor regulators
The important deficiencies of market rules in Argentina are highlighted in the $ Balance scandal. Unlike traditional financial markets, digital assets have few rules governing, making it a safe arena for scams and wild fluctuations.
Additional regulations are necessary for such events to be avoided – experts. Others call for new laws forcing civil servants to reveal their own investments before they can be authorized to present investment opportunities.
Argentina has few strict cryptocurrency regulations, which made it a welcome destination for risky parts. Without robust protections of consumers in place, ordinary investors are easily induced and are victims of fraud. The future of crypto in Argentina $ balance: a scandal that endangers the future of crypto in Argentina. Although the country has adopted digital assets to combat inflation and depreciation of their currency, scandals in this way can know confidence in industry. The regulators could now face additional pressure to strengthen the rules concerning the promotion and time to disclose the crypto. Otherwise, the same dilemmas could repeat itself and further erode the financial credibility of Argentina.
More news: the Argentinian president involved in controversy after promoting the crypto play becomes sour
