Javier Milei Faces Fraud Allegations

CRYPTO
Javier Milei Faces Fraud Allegations

Argentine President Javier Milei is facing legal action after his promotion and subsequent deletion of posts about the LIBRA memecoin, which lost nearly all its value after his withdrawal of support. A group of lawyers in Argentina has filed a complaint accusing Milei of fraud, claiming his endorsement misled investors before the token’s collapse.

According to the Associated Press, the case will be reviewed by prosecutors on Monday to determine if formal charges will be filed. Milei’s office has denied any wrongdoing, stating that he was unaware of the token’s specifics and regularly shares posts about Argentine startups to promote investment and job creation.

The controversy has raised concerns about the legitimacy of the LIBRA project, with on-chain analysts linking it to previous questionable crypto ventures, including the Melania token. If prosecutors decide to proceed, Milei could face legal consequences over his involvement in the project.

ECONOMY
Japan’s GDP Growth Slows Sharply

Japan’s economic growth slowed significantly in 2024, with annual GDP rising just 0.1%, down from 1.5% in 2023, according to data released Monday by the Cabinet Office. However, the economy performed better than expected in the fourth quarter, with GDP growing 0.7% quarter-over-quarter, beating market estimates of 0.3%.

A strong export sector and recovering auto production helped offset disruptions from a major earthquake and typhoon in Q3. Analysts also pointed to rising corporate investment, improving wages, and increased inbound tourism as positive drivers.

Japan’s global economic ranking slipped in 2023 when Germany overtook it as the third-largest economy, with India projected to surpass both soon. The Bank of Japan raised interest rates in early 2024, ending years of near-zero rates. However, concerns remain about U.S. trade policies under President Trump, with potential tariffs on imported cars expected by April 2, which could impact Japan’s export-driven economy.

TECH
DeepSeek’s AI Sparks Global Competition

At the AI Action Summit in France, global tech leaders acknowledged that China’s DeepSeek is becoming a formidable player in artificial intelligence. OpenAI’s Chris Lehane highlighted that DeepSeek’s low-cost AI models reinforce the increasing competition in the AI landscape, particularly between U.S.-led AI development and China’s authoritarian approach.

DeepSeek’s AI model, reportedly developed for under $6 million, raises concerns about how U.S. AI labs like OpenAI and Anthropic can maintain their competitive edge. Experts debate whether this signals a narrowing gap between China and the West in AI innovation or if it has been exaggerated.

While DeepSeek’s advances are impressive, tech executives remain skeptical about its immediate impact on leading AI companies. Some suggest DeepSeek may have used “distillation” techniques by leveraging larger U.S. AI models, raising ethical and legal questions. Industry leaders believe large-scale models will continue to dominate, but the emergence of DeepSeek proves that the AI race is accelerating.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.