Bac_02

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#MileiMemeCoinContriversy
In mid-February 2025, Argentine President Javier Milei became embroiled in a significant controversy after promoting a meme-based cryptocurrency called $LIBRA. On February 14, Milei endorsed $LIBRA via a post on his social media account X (formerly Twitter), describing it as a private initiative to boost Argentina’s economy by funding small businesses and ventures. This endorsement led to a surge in the token’s value, attracting significant investment. However, $LIBRA’s value plummeted shortly thereafter, resulting in significant financial losses for many investors. Blockchain analyses have shown that wallets linked to insiders had made over $100 million before the crash, raising suspicions of a “rug pull” scheme—a fraudulent maneuver in which developers withdraw significant funds, leaving investors with worthless assets. In response to mounting criticism, President Milei deleted his original promotional post and denied any direct involvement in the $LIBRA project, claiming he was unaware of its details before endorsing it. Despite his denial, the incident led to legal action, with opposition lawmakers filing lawsuits accusing Milei of fraud and money laundering. Federal Judge María Servini de Cubría has opened an investigation into the matter. The scandal also caused Argentina’s S&P Merval stock index to drop by almost 4%, reflecting investor concerns. The incident sparked a broader debate about the risks of politically charged meme coins, highlighting the potential for market manipulation and the need for better investor education in the volatile cryptocurrency landscape.

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