- President Javier Milei promoted the $LIBRA cryptocurrency, which later crashed by 94%.
- Argentine lawyers have filed fraud charges, accusing him of an “illicit association.”
- Political opposition is calling for Milei’s impeachment amid financial losses.
Argentine President Javier Milei is under legal scrutiny after endorsing the $LIBRA cryptocurrency, which saw a dramatic collapse. His now-deleted social media post initially helped drive the token’s market cap to $4.5 billion before it plummeted by 94%, triggering massive investor losses.
Critics, including former Argentine Central Bank officials, have accused Milei of engaging in fraudulent activity, alleging that his involvement resembled a “rug pull.”
Political Crisis Erupts in Argentina Over Milei’s Crypto Endorsement
The controversy surrounding $LIBRA stems from Milei’s direct promotion of the token, which was positioned as an economic booster for Argentina. While his endorsement initially encouraged mass investment, insiders allegedly offloaded significant amounts of tokens before the crash. The rapid decline in value has intensified scrutiny on Milei’s role and whether he knowingly contributed to misleading investors.
Legal experts argue that his actions violated Argentina’s Public Ethics Law, as sitting government officials are prohibited from endorsing private financial ventures. The lawsuit filed against him claims that his promotion gave the token unwarranted legitimacy, leading unsuspecting citizens to invest under false pretenses. The outcome of the case could set a precedent for political figures engaging with cryptocurrencies.
Amid growing public backlash, Milei has distanced himself from the project, stating that he was unaware of its details. However, critics see his deleted post as an admission of guilt, highlighting that financial losses in cryptocurrency markets often result from intentional deception rather than simple misjudgment. Some legal analysts predict that the case could develop into a wider probe involving other political and financial figures linked to the project.
With an impeachment bid looming, Milei’s political future remains uncertain. His libertarian economic stance has already faced resistance, and this scandal could accelerate efforts to challenge his leadership. If found guilty of fraud, he could face severe legal repercussions, further destabilizing Argentina’s government.
The $LIBRA scandal has turned into a major political and legal crisis for President Milei, with fraud charges and impeachment calls threatening his administration. His handling of the situation in the coming weeks will determine both his political survival and the broader implications for cryptocurrency regulations in Argentina.
“The lack of transparency in financial endorsements by public officials can shake the very foundation of trust in governance.”
