Nayib Bukele Accused of Embezzling Millions for BTC Projects

An investigation recently disclosed by the Organized Crime and Corruption Reporting Project (OCCRP) concluded that President Nayib Bukele of El Salvador embezzled funds to complete Bitcoin-related projects in the country.

According to the report, which was released on October 31st, the government utilized Central American Bank for Economic Integration (CABEI) loan resources to finance a portion of the procedure for legalizing Bitcoin in the country.

The loan, disbursed by CABEI in 2021, was intended to bolster the financing of small and medium-sized enterprises (SMEs) to alleviate the nation’s economic difficulties amidst the COVID-19 pandemic.

The investigation revealed that only $20 million of the $600 million lent was utilized for intended purposes.

In contrast, according to budget documents purportedly examined by OCCRP associates in the nation, $425 million was allocated to satisfy “general state obligations.”

Nonetheless, the investigation continues. The OCCRP determined that over $200 million of these $425 million were allocated to assist El Salvador in legalizing Bitcoin as a tender.

CABEI declared its public endorsement of the Bitcoin project at that time. Dante Mossi, president of CABEI, stated in June 2021 that the organization would assist the nation in this endeavor.

Mossi had stated:

“This is great news for the region. We are very proud to be the first to receive the request from the Government of El Salvador in this transformative process that is making history again today, by being the first country to adopt bitcoin as an official currency.”

However, that the terms of the $600 million loan prohibited El Salvador from using these funds to finance Bitcoin-related activities, as previous research had estimated that the country would be required to implement substantial legal and regulatory reforms, which would require significant funding.

Mossi elaborated:

“Basically, it says there’s a covenant in El Salvador, that no money from CABEI could be used to fund any Bitcoin activity. So we don’t, we don’t fund that.”

The process of “bitcoinization” in El Salvador has also been the subject of numerous criticisms from the nonprofit organization Cristosal.

Cristosal initiated three legal proceedings against the Salvadoran government in November 2022.

The disputes pertained to the administration of funds utilized by Bukele for Bitcoin purchases, the establishment of the Chivo national network of Bitcoin ATMs, and the purported identity theft of over two hundred citizens using the Chivo network.