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Argentine presidential candidate Javier Milei sued to promote a Ponzi crypto program

A group of harmed investors want Javier Milei to refund them about $300,000 for promoting a crypto fraud scheme.

Javier Milei – one of the main candidates to become the new President of Argentina – has been entangled in controversy for advertising cryptocurrency investment platform CoinX. The company promised huge returns to investors, but it halted operations after the National Securities Commission said it was not legally authorized to operate nationwide.

After the adverse consequences following the closing of the trading site, a group of affected investors intended to wage a war of words with Milei. According to them, his interaction with the platform resulted in damages ranging from 30 million to 40 million pesos (nearly $300,000).

Not a good start for Milei’s presidential campaign

Argentina’s next presidential election is until October 29, 2023, but it has attracted the attention of the entire society. The eccentric libertarian economist and politician – Javier Milei – is seen as having a great chance to become the country’s next leader, having been embroiled in a cryptocurrency scandal.

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

They are revolutionizing the way of investing to help Argentinians fight inflation. Now you can simulate your investment in pesos, dollars or cryptocurrencies and make a profit,” he said.

During its existence, the trading venue claims to have assembled a team of experts who can give the best advice to investors. It also promises substantial profits to everyone willing to become a user.

However, in June 2022, the Argentine National Securities Commission (CNV) ordered CoinX to close its operations because it was not licensed in the South American country. Needless to say, the company failed to pay the huge returns investors expected, and many customers lost significant amounts of money due to the company’s closure.

According to a domestic report, a group of affected customers even tried to sue Javier Milei, claiming that his advice led them to join CoinX. Their loss was about $300,000, and they asked the presidential candidate to reimburse those funds.

It can be said that if Milei wins the election next year, he will become the most eccentric President in the history of Argentina. His nickname is “el Peluca” (Wig) because of his weird hairstyle. In addition to the crypto scandal surrounding his name, he is also known as an advocate for abortion rights and an opponent of tax increases. On top of that, he has five dogs, which he calls his children, and is a Tantra instructor.

Argentina, Inflation and Cryptocurrency

The South American country has struggled with high inflation and political crises for decades. These adverse conditions have led some locals to turn their sights to cryptocurrencies, and more specifically, stablecoin Tether (USDT).

Many exchanges, including Binance and Lemon Cash, revealed that the cost of purchasing products has skyrocketed after the resignation of Economy Minister Martin Guzman last month.

Converting their falling pesos into a stablecoin pegged to the value of the US dollar is a method used by many other individuals affected by hyperinflation and political turmoil. One such example is Turkey, where the inflation rate is close to 80%.

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