Javier Milei, a far-right libertarian candidate in Argentina’s presidential race, has taken a surprising lead in the primary elections, garnering 30.5% of the vote. This strong performance has pushed the main conservative opposition and ruling Peronist coalition into second and third places, with 28% and 27% of the vote, respectively. However, Milei’s rise to prominence comes amid a lawsuit over his involvement in promoting an alleged crypto Ponzi scheme known as CoinX.
A Surprising Turn in Argentine Politics
The primary election results have been seen as a significant shake-up in Argentine politics, with voters expressing their disillusionment with the country’s two main political parties. Argentina is currently grappling with a staggering 116% inflation rate and a cost-of-living crisis that has plunged four out of ten people into poverty.
The primary elections are viewed as a ‘dry run’ for the general election scheduled for late October and are often considered an accurate indication of the final outcome. Former conservative President Mauricio Macri commented on Milei’s unexpected growth, saying, “This speaks of people’s anger with politics.”
Milei’s Connection to CoinX
Pro-Bitcoin Milei, who has previously criticized the central bank as “a scam,” is now facing legal action for his role in promoting the alleged crypto Ponzi scheme CoinX. The platform attracted traders through its substantial social media following, promising huge profits through automated trades overseen by AI bots and expert traders.
In December 2021, Milei endorsed CoinX on his popular Instagram account, claiming that it was “revolutionizing the way to invest to help Argentinians with inflation.” He further encouraged followers to simulate investments in pesos, dollars, or cryptocurrencies to earn profits.
Milei’s visit to CoinX’s Buenos Aires office and subsequent promotion of the project led to increased interest in the platform.
Legal Trouble and Investor Losses
However, the situation took a turn for the worse when several investors complained about not receiving the expected returns. The country’s regulatory National Securities Commission (CNV) subsequently ordered CoinX to cease operations.
The legal team representing the aggrieved investors estimates losses in the range of 30 million to 40 million pesos (nearly $300,000). Some of these investors are now seeking damages from Milei.
A Complex Political Landscape
Milei’s involvement in the alleged crypto scam adds complexity to an already turbulent political landscape in Argentina. His unexpected success in the primary elections reflects a broader dissatisfaction with traditional political parties and the country’s economic woes.
As the general election approaches, the lawsuit and Milei’s connection to CoinX may become a focal point of political debate and public scrutiny. Whether these legal troubles will impact his chances in the final election remains to be seen, but they undoubtedly add another layer of intrigue to an already heated political contest.
