One of the leading contenders for the Argentine presidency, Javier Milei, was sued for promoting a purported cryptocurrency Ponzi scheme, according to Clarín.
In December 2021, the writer and libertarian economist posted on Instagram for his 1.3 million followers a video showing a visit to the CoinX investment platform’s office.
The company offered clients returns of up to 8% per month on cryptocurrency investments. It claimed to use artificial intelligence, trading bots and asset diversification to generate high profits.
«They are revolutionising the way people invest to help Argentines avoid inflation. From now on you can model your investments in pesos, dollars or cryptocurrencies and earn profits. Write to CoinX on my behalf so they can recommend the best for you,» Milei stated in the post.
Earlier the politician voiced support for Bitcoin and described central banks as a scam.
CoinX had been running an aggressive social-media advertising campaign for several months. However, since March the platform stopped paying investors. The company ceased operations in June after Argentina’s National Securities Commission warned that it lacked approval to operate.
The platform did not return all funds to users. According to Juan Pablo Kieza, the attorney who filed the suit against Milei, the losses amount to up to 40 million pesos (roughly $293,000).
The lawyer noted that for some users the economist’s statements as a credentialed expert became a spur to invest in CoinX.
Following public concerns about the platform, Milei and his representatives sought to distance themselves from the alleged fraud scheme. The politician said he had met with the company to advise on its business strategy.
According to Kieza, questions about Milei’s joint liability would fall away if he can prove that the statements were ordinary paid advertising on social media and show the relevant contract. The lawyer is confident that no such document exists.
Earlier in the United States, a lawsuit was filed against billionaire Mark Cuban for promoting a Ponzi scheme tied to the crypto broker Voyager.
In October 2021, the company signed a five-year partnership with the Dallas Mavericks NBA club owned by Cuban.
In July, Voyager filed for bankruptcy.
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