Argentina’s outlandish Bitcoiner presidential candidate is being sued for allegedly promoting a cryptocurrency Ponzi scheme.
Javier Milei, a leading candidate for Argentina’s presidency, promoted CoinX, a cryptocurrency investment platform that promised considerable returns to users, to his 1.3 million Instagram followers last year.
The platform, which shut down in June, boasted a massive social media following and claimed to use AI, bots, and expert traders to automate trades for investors—and make them much money.
Milei paid a visit to their Buenos Aires office in December.
“They are revolutionizing the way to invest in helping Argentinians deal with inflation,” he wrote on Instagram. “You can now profitably simulate your investment in pesos, dollars, or cryptocurrencies.”
However, CoinX shut down after the National Securities Commission (CNV) warned that the platform lacked the legal right to operate in the country and ordered it to cease operations. According to local media, it also had not paid back investors the expected returns.
Argentina’s newspaper, Clarn, says a group is now suing Milei
According to the Argentine daily newspaper Clarn, a group of disgruntled followers is now suing Milei for damages because they followed Milei’s advice and did not see any significant returns.
According to the complaint filed by lawyer Juan Pablo Chiesa, investors are now out of pocket between 30 million and 40 million pesos (nearly $300,000).
The eccentric congressman, who frequently posts on social media, claims he wants to save Argentina, which has one of the highest rates of inflation in the world.
And he’s doing well: some polls place him among the top three candidates expected to win the election next year.
On the other hand, appearing in Instagram posts alongside dubious cryptocurrency platforms is unlikely to help him.