MILEI CASE AND $ LIBRA: The role of public figures in the promotion of cryptoactives

The recent collapse of the Cryptocurrency $ Librapromoted by the Argentine president Javier Mileihas triggered a series of legal and political repercussions that could significantly affect their mandate, but also disclose various issues such as the role of public or influencers in the promotion of this type of assets and the regulatory framework that supervises them.

The President Milei used his account on social network X to spread $ Libraa cryptocurrency that experienced a rapid increase in value before collapsing, resulting in substantial losses of more than US $ 90 million for more than 40,000 investors.

Although he already eliminated the publication and indicated not knowing what it was, he already faces a series of criminal complaints for alleged illicit association and fraud.

Álvaro Castro, partner of Damma Legal AdvisorsHe explained that the accusations against the Argentine president could focus on possible crimes of fraud, but this will be determined when the truth is established whether or not it was involved.

“The promotion of a cryptocurrency without a proper diligence and revelation of information on the associated risks could be interpreted as a serious fault, especially if it is shown that there was prior knowledge of such possible risks for investors. In addition, the use of its position and digital platforms to support a non -regulated financial asset further aggravates its situation due to the great scope and the legitimacy that this provided, ”says the specialist.

The case of $ Pound It is not an isolated fact. In recent years, public figures, including celebrities, influencers and politicians, have promoted cryptocurrencies without due regulation, leading investors to suffer serious losses. In the United States and Europe, various personalities have already been sanctioned for promoting cryptoactive without revealing their economic participation in the project.

“The support of public figures grants credibility to highly speculative assets, which can mislead non -sophisticated investors,” says Álvaro Castro Lora, an expert lawyer in financial and cryptoactive regulation.

“It is essential that the authorities establish clear regulations to prevent these practices from deriving in mass fraud.”

In that sense, he explains three important implications to analyze in this new digitalized economy:

1. The role of influencers in the promotion of these assets: Many public figures and social networks have played a key role in the popularization of cryptocurrencies without offering complete information about the associated risks. This has led to massive deceptions and significant losses for investors.
2. Regulation in the stock market: As cryptoactives gain prominence, the corresponding financial organizations of each country must have stricter restrictions on their advertising and marketing. In many countries, laws that demand greater transparency in promoting them are already being implemented. Reduce informative asymmetry and manage agency risk should be fundamental pillars of regulation.
3. Political implications of this type of actions: The support of political figures to cryptoactive without regulation can generate distrust in institutions and affect economic stability. And as in the case of Milei, his participation could impact his credibility and that of his mandate.

“The case of Milei highlights the need for a more strict legal framework for the promotion of cryptoactive, ensuring that those who support them are transparent about the risks and their relationship with the project,” says Castro Lora.

It is worth emphasizing that Argentina’s anti -corruption office has already begun an investigation to determine if there were improper behaviors by the president and his cabinet in relation to the promotion of $ Pound. This research could lead to additional sanctions if any irregularity is proven.