In February 2025, Argentine President Javier Milei became embroiled in a significant controversy involving the cryptocurrency $LIBRA. On February 14, Milei promoted $LIBRA on social media, suggesting it would stimulate Argentina’s economy by funding small businesses and ventures. This endorsement led to a rapid surge in the token’s value, reaching a market capitalization of approximately $4.4 billion. However, the value plummeted by over 95% shortly thereafter, resulting in substantial financial losses for investors.
Following the collapse, allegations emerged that the incident was a “rug pull” scheme, where insiders profited at the expense of other investors. Reports indicated that eight insider wallets cashed out $107 million in liquidity, contributing to the token’s sudden crash.
In response to mounting criticism, Milei deleted his initial promotional post and denied any involvement in the development of $LIBRA, stating he was unaware of the project’s specifics at the time of promotion. He has called for an investigation by the Anti-Corruption Office to determine if any misconduct occurred within the government, including his own actions.
The scandal has led to legal complaints and calls for impeachment from opposition politicians, who accuse Milei of fraud and ethics violations. Despite these challenges, impeachment appears unlikely due to insufficient support in Congress. However, the incident has raised concerns about Milei’s credibility and could impact his economic reform agenda and approval ratings ahead of the upcoming midterm elections.
This event underscores the risks associated with high-profile endorsements in the volatile cryptocurrency market and highlights the potential for significant financial and political repercussions.