“They are revolutionizing the way of investing to help Argentines escape from inflation. From now on you can simulate your investment in pesos, dollars or cryptocurrencies and obtain a profit. Write to CoinX for me so they advise them with the best”.
Almost 1.3 million people follow liberal economist Javier Milei on his Instagram account. For a litter of youngsters ─and not so much─the deputy became a reference to put an explanation to the complicated and always treacherous national economy.
On December 18, Milei published a post on his networks recommending CoinX, a digital financial company that offered returns in dollars and operations in cryptocurrencies. Many of those followers of hers paid attention to her. Several lost money.
It is that they found a company that claimed to be able to offer returns in dollars of up to 8 percent per month. An alleged “ponzi scheme”, which stopped paying savers in March this year. That is why now they ask the deputy to take responsibility for his words and his recommendations. They denounce him as “solidary responsible”.
Milei will have to give more explanations for the CoinX case (Photo: JUAN JOSE GARCIA)
That was the strategy that twenty investors took, who put their savings in CoinX assets. They are amounts ranging from 1000 to 10 thousand dollars. The complaint is promoted by the lawyer Juan Pablo Chiesa, who has been working on cases related to other cryptocurrency scams, such as Generación Zoe or Vayo Coin. He says that the debts are between 30 and 40 million pesos.
In all cases, the scheme is similar: above-average monthly dollar returns, based on supposed trading algorithms that operate (and beat) the dizzying crypto market. An almost esoteric financial salvation, in a context where inflation rushes in and eats up any peso that stands still.
What is CoinX
With a strong marketing campaign, garish colors and Instagram posts with phrases from Steve Jobs or the investor Warren Buffet, the CoinX account has about 500 thousand followers. From there they invited to invest in a company that could beat inflation. “Wall Street with cutting-edge technologyartificial intelligence, bots and a team of expert traders”, they stated in their publications.
Juan Manuel Malaspina, Investment Director of Coinx World.
They even promoted themselves with a nice spot on YouTube, where a similar doctor recommended invest in a fixed term of cryptocurrencies to avoid ‘inflationitis’.
There they offer two types of plans, depending on the amount. One from 500 dollars, with monthly interest payment and 6 months. And another Premium, starting at US$ 1,000. Regarding the assets in which it invests, CoinX states that the returns are based on a “diversification” among more than 5,000 assets on Wall Street. a vague definitionconsidering that the Common Investment Funds that operate through banks are obliged to indicate which assets make up their portfolio.
But the most suspicious is the investment simulator, which offers a return in dollars of between 5 and 8 percent per month, depending on the amount. Who puts US$ 1000 USD will get about US$ 80 in 30 days. A curiosity even occurs: if the saver puts that same amount but in pesos (320 thousand at the blue exchange rate), the return will also be 8 percent per month.
Faced with this situation, on June 8, the National Securities Commission published a resolution (508/2022) in which it instructed CoinX and CoinX World to immediately cease all invitations to invest in negotiable securities for not having the proper authorization. for it. They also target Juan Manuel Malaspina, presumed director of Investments of the company.
The CNV alert on CoinX
But by that time, CoinX had already been operating for several months. According to their social networks, the first post on Instagram took place on December 14, 2021. Four days later, received a visit from Milei in their offices.
The controversy post
The post appears on Milei’s Instagram. She is seen there entering the offices of CoinX, where she arrives humming “Yo soy el Leon”, a fragment of a classic song by La Renga that she appropriated for her massive presentations. The scene has about ten men in shirts, applauding in a modern and bright office, although somewhat small for the waterfall that decorates it: a wall of water, falling on the logo of the new firm, a silver X that comes to “revolutionize” the crypto market.
In her text, Milei says the following: “I had the pleasure of meeting the @coinx.world offices and their team. They are revolutionizing the way of investing to help Argentines escape from inflation. From now on you can simulate your investment in pesos, dollars or cryptocurrencies and get a profit. Write them @coinx.world on my behalf so they advise you with the best!”
The posting of the controversy on Javier Milei’s Instagram
If it is non-traditional advertising on social networks, it is not specified anywhere. For Chiesa, this point is key. “Milei, in order not to be jointly and severally liable, he has to show me an advertising contract. If he has it and says that it is limited, he blocks me. But that does not exist,” he explains to Clarion.
The intersection is part of a much larger debate and has its eye on the opaque relationship between social media influencers and the products they recommend to their followers. Especially when it comes to recommending products that they don’t normally use. Like, for example, financial services.
Another similar scheme was blown up a few months ago, when the company VayoCoin started an aggressive campaign in networks at the hands of several personalities of the show: Wanda Nara, L-Gante or Cande Tinelli were some of the celebrities who recommended it.
In the case of Milei it is particular, since the economist is indeed a reference of the topic that he promotes. According to the lawyer, many of the clients who contacted him they actually invested their money in CoinX attracted by the support of the Lion. “If a guy of that caliber advises me, I put it on,” the plaintiffs said.
That is why they sent two document letters to the legislator (one to his office and another to his home), asking him to take responsibility. According to Chiesa, Milei received them and had a strong questioning with the deputy.
On January 19 of this year, almost a month after Milei’s visitCoinX had to come out in a statement on its social networks defending itself from the accusations that pointed to it as an alleged ponzi scheme ─that is, it pays dividends with the income of other savers─. Those were the weeks in which Generation Zoe began to fall, and other similar schemes began to be targeted.
In his post, CoinX stated that the meeting with Milei had been to advise on communication issues. They also claimed that the investments were backed by the legislation of El Salvador, where the firm is headquartered. It is the country where the Bitcoin industry is flourishing.
The document letter sent to Javier Milei for the CoinX scam
“Our company is registered with the AFIP and we are in the process of registering it with the National Securities Commission (CNV) and other autarchic entities,” they said. The CNV would later deny them. Legally, CoinX is registered as a company called ‘Proyectos RRS Sociedad Anónima’. Malaspina does not appear there.
In March, according to the savers’ complaint, they stopped paying. On June 7, they assured on their social networks that they would stop taking investments.
Faced with the explosive complaint, Milei came out to detach himself from the company in an interview with LN +. There I affirm that “they did not swindle anyone”. “They called me to give an opinion on the business and I can clearly explain what I saw: they took money and then bought bonds. It was the same business as a bank. But since you do not have the interest rate regulated by the Central Bank, then they could pay more. And they also complemented it with Bitcoin farms, “said the economist.
As he explained, the business closed due to the fall in the price of bitcoin. “When we saw the structure we suggested modifications to them. Since they didn’t want to do it later, we withdrew” Milei took off. However, according to the journalist Sebastián Davidovsky on his social networks (one of the first to follow the subject), CoinX did not work on crypto mining.
consulted by Clarionsources close to Milei delved into the explanation of the economist’s relationship with the company. “Javier recommended to those responsible for CoinX to change the business model and redefine it. The suggestion was to turn towards commissions with bonuses, alerting them to the risks involved in investing in cryptocurrencies. And given the receptivity and speed with which the changes were made, the He posted them on IG,” they maintained.
They also confirmed that Milei did not charge for the posts made. “He was not the only one who publicized them, there were more famous people,” they added.
According to the presentation, they must resolve the situation of the victims by September 7. Clarion He tried to contact the CoinX company through the WhatsApp they have on their website, but there was no response.
The deputy, with a long history in the media, loudly explaining notions of economy, will have to give explanations but on other numbers that do not close. those of one revolution that —for those who entered— was not such.