Argentina Presidential Candidate Faces Legal Backlash For Promoting A Crypto Ponzi

Presidential Candidate In Argentina Sued for promoting scam Crypto project.

A top Argentinian presidential contender has been taken to court over his role in promoting a crypto Ponzi Scheme where investors lost tens of millions of Pesos.

One of Argentina’s current presidential candidates is about to have a rough time in court after a group of investors sued him over his previous actions in the crypto space. Javier Milei is currently ranked among the top 3 presidential contenders in Argentina.

Javier has been known to be an ardent Bitcoin supporter. At one time, he was quoted calling the Central Bank a scam. However, the presidential candidate’s past actions are returning to haunt him.

He Promoted A Potential Ponzi

Apparently, Javier capitalized on his 1.3 million strong fan base on Instagram to promote CoinX. CoinX was an investment platform that promised incredible returns to crypto holders who took a chance to invest in it.  

Back in December 2021, Javier posted on Instagram, seemingly with the intention to promote the platform. His post read,

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

Argentina has been one of the big countries that have been rated as crypto-friendly.

However, things went south for the investment platform when the Argentinian National Securities Commission (CNV) went after it for operating in the country illegally. The firm was subsequently ordered to cease all operations in the country. Unfortunately, the firm went underground without paying investors their dues.

Candidate Sued By Affected Investors

Now, a group of investors is suing Javier Milei for his role in misleading them into investing in CoinX. It’s estimated that around $40 million pesos ($300,000) of investor funds were lost when CoinX disappeared from the scene.

In his defense, Javier says that he didn’t force anyone to invest in CoinX, and has distanced himself from the failed investment firm.

Recall that, As reported by The Crypto basic, the current president recently intimated that the country was open to adopting cryptos as legal tender.

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