One of the main contestants in Argentina’s ongoing Presidential race – Javier Milei – has been hung out to dry for advertising the cryptocurrency investment platform CoinX. The company promised huge returns on investments but then halted activities on its platform after the National Securities Commission said it had no operational permission to offer products and services in Argentina.
After facing the adverse consequences of the trading venue shut down, a group of affected investors are planning to launch a legal offensive against Milei. According to them, his interaction and endorsement of the platform resulted in steep losses of between 30 million to 40 million pesos (nearly $300,000).
In December 2021, Milei promoted CoinX to his 1.3 million followers on Instagram saying “They are revolutionizing the way to invest in helping Argentinians with inflation. You can now simulate your investment in pesos, dollars, or cryptocurrencies and earn a profit,” he said back then. The trading venue also stated that it had gathered a team of professionals that could give the best financial advice to investors at that time. It also promised massive returns for anyone willing to invest.
In June 2022, Argentina’s National Securities Commission (CNV) ordered CoinX to shut down its operations because they were not licensed to operate in the South American country. As a result, the firm did not pay out the massive returns it had promised investors and many customers lost huge amounts of money due to the shutting down of the company.
Argentina has been battling with high inflation and political crises for decades. These conditions influenced some locals to turn to cryptocurrencies, more specifically, the stablecoin Tether (USDT). Numerous exchanges revealed that the price of the product spiked after the Economy Minister – Martin Guzman resigned last month.Converting their failing pesos to a stablecoin pegged to the value of the US dollar is a method used by many people worldwide affected by inflation and political chaos.
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