Argentina’s President caught in crypto scandal—What happened?
Javier Milei’s Libra ($LIBRA) post sent prices soaring—then crashing, leaving investors furious and lawyers circling
Over the weekend, Argentina’s President, Javier Milei, found himself at the center of an unprecedented crypto scandal. Investors are accusing him of a “rug pull”—a term used when a crypto project suddenly collapses, leaving investors with nothing. But this isn’t just another scam—this time, a sitting president is at the center of the controversy.
It started when Milei publicly endorsed a cryptocurrency called Libra ($LIBRA) on social media, a move almost unheard of for a world leader. His post sent the token’s price skyrocketing to nearly $5, only for it to crash within hours, wiping out an estimated $4.4 billion in value.
Did Milei’s endorsement mislead investors?
Furious investors say Milei’s post misled them into believing the token was legitimate, only for it to fail almost immediately. Some lawyers are now pushing for legal action against the president, accusing him of fraud.
Milei, however, has denied any wrongdoing. His office claims he was merely supporting an Argentine startup, as he often does, and had no involvement in the token’s actual development. After the collapse, he deleted his original post and lashed out at critics, calling them “filthy rats of the political caste.”
Adding to the mystery, blockchain researchers uncovered ties between Libra’s developers and a previous scam token, Melania. Red flags were there from the start—Libra’s website was hastily made, and there was little transparency about who was behind it. On-chain data revealed that insiders quietly withdrew millions before the crash, further fueling suspicions that this was a well-planned exit scam.
Opposition calls for Milei’s impeachment over crypto fiasco
The fallout has been swift. Outraged opposition politicians are now calling for Milei’s impeachment, arguing that he used his influence recklessly. Prosecutors are still weighing potential charges, but one thing is clear—crypto’s role in politics is growing, and not always in a good way.
Libra’s collapse also underscores a broader trend of political figures dabbling in crypto, often with disastrous results. The Central African Republic (CAR) recently launched a $CAR memecoin, branding it as a national project for unity and development. And just days before taking office, Donald Trump’s campaign launched a $TRUMP memecoin, which has since seen a steep decline in value.
