Argentina Presidential Candidate Sued for Promoting a Crypto Ponzi Scheme

Javier Milei – one of the main contestants to become Argentina’s new President – has been caught in the crossfire for advertising the cryptocurrency investment platform CoinX. The company promised huge returns to investors, but it halted activities after the National Securities Commission said it had no legal permission to operate in the nation.

Following the adverse consequences after the trading venue shut down, a group of affected investors intended to launch a court battle with Milei. According to them, his interaction with the platform resulted in losses of between 30 million to 40 million pesos (nearly $300,000).

Not a Good Start for Milei’s Presidential Campaign

Argentina’s next presidential election is not until October 29, 2023, but it has already attracted the attention of broad society. The eccentric libertarian politician and economist – Javier Milei – considered to have a big chance to become the country’s next leader, got involved in a crypto scandal.

In December last year, he promoted a dubious digital asset platform called CoinX to his 1.3 million followers on Instagram.

“They are revolutionizing the way to invest in helping Argentinians with inflation. You can now simulate your investment in pesos, dollars, or cryptocurrencies and earn a profit,” he said back then.

During its existence, the trading venue asserted it had gathered a team of professionals that could give the best advice to investors. It also promised considerable returns for everyone willing to become a user.

In June 2022, though, Argentina’s National Securities Commission (CNV) ordered CoinX to shut its operations since it was not licensed in the South American country. Needless to say, the firm did not pay the massive returns investors were expecting, and multiple customers lost significant sums due to the company’s closing.

According to a domestic report, a group of harmed clients even plan to sue Javier Milei, claiming that his advice made them join CoinX. Their losses are approximately $300,000, and they demand the presidential candidate reimburse those sums.

It is safe to say that if Milei wins the elections next year, he will become Argentina’s most eccentric President in history. His nickname is “el Peluca” (the Wig) because of his bizarre hairstyle. Apart from the crypto scandal around his name, he is also known as a proponent of abortion rights and an opponent of raising taxes. On top of that, he has five dogs, which he refers to as his children, and is a Tantra instructor.

Argentina, Inflation, and Crypto

The South American nation has been battling high inflation and political crises for decades. These adverse conditions caused some locals to turn their sight into cryptocurrencies, and more specifically, the stablecoin Tether (USDT).

Numerous exchanges, including Binance and Lemon Cash, revealed that the cost of buying the product spiked after the resignation of Economy Minister Martin Guzman last month.

Converting their depreciating pesos into a stablecoin pegged to the value of the US dollar is a method used by many other individuals affected by galloping inflation and political chaos. Such an example is Turkey, where the inflation rate hit almost 80%.

Featured Image Courtesy of 24HourNews