A group of crypto investors in Argentina sued a presidential candidate
The plaintiffs accused Javier Milei of promoting the CoinX platform, which went out of business without returning customers' investments and promised returns
24.08.2022 - 14:00
337
2 min
0
What’s new? A group of investors sued Javier Milei, one of Argentina's presidential candidates, sued for promoting the cryptocurrency investment platform CoinX. The company promised investors large returns but stopped operating after Argentina's National Securities Commission (CNV) said it did not have a legal permit to operate in the country. The project shut down without returning investors' initial investment or the promised returns.
Information on Clarin's website
How did events develop? In December 2021, Milei visited the CoinX office, which he reported on his social media pages. According to the company's representatives, customers could earn up to 8% per month from investments in cryptocurrency. They also assured that they used artificial intelligence, autotrader (a bot for trading), and asset diversification to generate high returns, and brought in a team of experienced traders. At the time, Milei wrote that CoinX had “revolutionized investing” by helping Argentinians cope with inflation.
Milei's subscribers, who number more than 1 million, took his words as investment advice. After CNV's statement and the termination of the project, investors reported losses of 30 to 40 million pesos (~$220 000 to $290 000). They intend to seek damages in court.
In February Chainalysis analysts reported that in 2021 money transfers in cryptocurrencies increased worldwide, with several Latin American countries showing the highest growth. Venezuela, Argentina, Brazil, El Salvador, Honduras, Costa Rica, and Mexico saw 800-900% growth.
Argentina also created a center to support startups in financial technology and cryptocurrency. It will be supervised by CNV and aims to ensure that companies communicate with Argentine regulators at an early stage. However, in May, the Central Bank banned local financial institutions from offering transactions related to digital assets to customers.
Useful material?
Telegram 
Twitter Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024
Cryptocurrency rates
-
Bitcoin
$99 443
BTC
+2.09%
-
Ethereum
$3 385.98
ETH
+8.04%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.38
XRP
+24.66%
-
Dogecoin
$0.394337
DOGE
+2.19%
-
Cardano
$0.874224
ADA
+11.62%
-
Bitcoin Cash
$494.79
BCH
-6.84%
-
Polkadot
$6.16
DOT
+8.06%
-
Stellar XLM
$0.279413
XLM
+17.78%
-
Litecoin
$90.16
LTC
+0.1%