Investors in Argentina sued top presidential candidate for promoting CoinX

Despite not taking place until October 29, 2023, the next presidential election in Argentina has already caught the public’s interest. Javier Milei, a peculiar libertarian politician and economist who is considered to have a good chance of becoming the nation’s next leader, is embroiled in a cryptocurrency scandal.

One of the promising candidates for the position of President of Argentina, Javier Milei, has reportedly come under fire for promoting the crypto investing platform CoinX. The National Securities Commission stated that the company lacked the necessary licenses to operate in the country, and as a result, it had to suspend operations after promising investors massive returns.

Investors in Argentina to sue Milei

Following the unfavorable effects of the trading venue’s closure, a group of aggrieved investors in Argentina planned to sue Milei in court. They claim that as a result of his involvement with the platform, they suffered losses of between 30 and 40 million pesos (about $300,000) and demanded compensation from the presidential contender.

Notably, Milei advertised CoinX, a questionable digital asset platform, to his 1.3 million Instagram followers in December 2021.

The trading platform claimed that over the course of its existence, it had amassed a group of experts who could provide the finest guidance to investors. Additionally, it guaranteed significant rewards to anyone who agreed to utilize it.

“They are revolutionizing the way to invest in helping Argentinian [investors] with inflation. You can now simulate your investment in pesos, dollars, or crypto and earn a profit,” Milei stated at the time.

However, because CoinX lacked a license in Argentina, the National Securities Commission (CNV) of the South American nation ordered CoinX to cease operations in June 2022. Simply put, the company failed to provide the massive profits investors had hoped for, and several customers suffered heavy losses as a result of the closure of the company.

Argentina has witnessed a sharp increase in the adoption of cryptocurrencies. Notably, as TheCoinRise reported in April, the Town of Sorrandino in Argentina hinted at its plans to invest in crypto mining.