Argentine President Javier Milei is facing allegations of fraud after promoting a cryptocurrency, $Libra, which crashed shortly after he mentioned it on social media. Investors suffered heavy losses, prompting legal scrutiny and political backlash.
$Libra’s Meteoric Rise and Fall
On Friday, Milei posted about $Libra on X (formerly Twitter), including a link to a site selling the token. Following his post, the cryptocurrency saw a sharp surge in value, attracting eager investors. However, within hours, $Libra’s price nosedived, leading to significant financial losses for most buyers. Critics quickly likened the situation to a “rug pull,” where a project gains traction before collapsing, leaving investors stranded.
Milei’s Defence: “Not an Endorsement”
In an interview with Argentine TV channel Todo Noticias, Milei insisted he had acted “in good faith” and never officially endorsed $Libra. He stated, “I didn’t promote it, I merely shared it.” He also defended deleting his post, explaining that he removed it after realizing he lacked full details about the project.
Comparing investors to gamblers, he remarked, “If you go to a casino and lose money, what’s there to complain about when you knew the risks?” His dismissive stance has fueled further criticism, with many questioning the ethical implications of his social media influence.
Legal and Political Fallout
A federal judge is now assessing fraud allegations against Milei, brought forward by multiple plaintiffs. The Anti-Corruption Office has also launched an inquiry to determine whether the president acted improperly. Meanwhile, opposition politicians have threatened impeachment proceedings, though analysts believe they lack the necessary votes to move forward.
This controversy comes as Milei pushes for radical economic reforms in Argentina. The scandal threatens to distract from his agenda, raising concerns about the political stability of his administration.
Crypto Risks and Political Responsibility
The $Libra debacle highlights the volatile nature of cryptocurrency investments and the ethical responsibility of public figures when discussing financial assets. Whether Milei is found legally accountable or not, this incident serves as a cautionary tale about the influence of high-profile endorsements in the crypto space.
