Argentina’s President Javier Milei is under investigation after promoting the $LIBRA cryptocurrency, which crashed shortly after launch, leading to allegations of fraud. (x/@VirginiaSanroma)
Argentina: Argentina’s Federal Judge Maria Servini has been assigned to lead an investigation into President Javier Milei’s links to the cryptocurrency $LIBRA, amid growing allegations of fraud. The probe, launched on Monday, aims to determine whether Milei engaged in any illegal activities related to the crypto project. Some opposition leaders have even suggested that, depending on the findings, Milei could face impeachment.
The scandal erupted last Friday when $LIBRA was launched with a bold claim to boost Argentina’s economy by funding small businesses and startups. Milei took to his social media account on X to endorse the cryptocurrency, leading to an initial surge in its market value, briefly reaching $4 billion. However, the excitement was short-lived as $LIBRA’s value plunged rapidly, triggering accusations of a “rug pull” scam—a scheme where early investors artificially inflate an asset’s value before abruptly cashing out, leaving others with worthless holdings. As criticism mounted, Milei swiftly deleted his promotional post, raising further suspicions.
By Saturday, Milei’s office released a statement denying any direct involvement with $LIBRA. The statement clarified that the president frequently promotes private business ventures in line with his free-market philosophy and that he had merely shared a post about KIP Protocol, the developer behind the cryptocurrency. “The president shared a post on his personal accounts announcing the launch of KIP Protocol’s project, as he does daily with many entrepreneurs who wish to launch projects in Argentina to create jobs and attract investments,” the statement read. A government official, speaking anonymously to Reuters, defended Milei, claiming that if anyone was a victim, it was the president himself. “The only one on the face of this earth who was cheated is Milei. Javier promotes private projects all the time and will continue to do so,” the official said.
Despite Milei’s defense, critics argue that the president was actively involved in the promotion of $LIBRA. Lawyer Jonatan Baldiviezo, one of the plaintiffs in the case, accused Milei of fraud, alleging that his endorsement played a crucial role in misleading investors. “Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential,” Baldiviezo told the Associated Press. A local NGO, Observatorio del Derecho a la Ciudad, also filed a lawsuit, claiming that the scam affected over 40,000 investors, resulting in losses exceeding $4 billion.
In a further twist, Hayden Davis, one of $LIBRA’s developers, suggested that Milei’s sudden withdrawal of support led to the cryptocurrency’s collapse. “Despite prior commitments, Milei and his team unexpectedly changed their position, withdrawing their support and deleting all previous posts on social media,” Davis said in a video statement.
Although experts believe impeachment is unlikely, the controversy threatens to damage Milei’s economic credibility ahead of Argentina’s 2025 midterm elections. His libertarian economic policies, already under scrutiny, may face greater skepticism following the scandal. Milei, however, has dismissed the allegations as politically motivated, blaming his opponents for fueling the uproar. In a defiant social media post, he wrote: “This increases our conviction to kick them in the [a*].”* As the investigation unfolds, the fate of Argentina’s crypto-friendly president remains uncertain, with the scandal raising serious questions about financial governance and investor protection in the country.
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