Argentina’s president Milei faces investigation over $LIBRA cryptocurrency allegations

Tuesday 18 February 2025 - 08:36

Argentina's President, Javier Milei, is under investigation for potential fraud related to the cryptocurrency $LIBRA, following a controversial promotion on his social media. On Monday, Federal Judge Maria Servini was randomly selected to lead the investigation into Milei's involvement, raising concerns about possible legal violations. Some opposition politicians have warned that the president could face impeachment, depending on the investigation's findings.

The scandal began on Friday when Milei promoted $LIBRA on X (formerly Twitter), calling it a tool to foster economic growth by supporting small businesses and startups. The cryptocurrency briefly saw a market capitalization of $4 billion, but its value quickly plummeted, leading some to label it a scam. As the value dropped, Milei deleted his post.

Critics raised suspicions of a "rug pull" scam, a scheme where early investors artificially inflate a currency’s value, then withdraw their investments, causing its collapse and leaving later investors with worthless coins. In response, Milei's office distanced him from the cryptocurrency, clarifying that he was not involved in its development but often promotes business ventures as part of his free-market stance.

Despite this, critics pointed out that the cryptocurrency’s website used Milei's slogan, fueling suspicions that he was part of the scheme. Some plaintiffs have filed a lawsuit, holding Milei personally responsible for the alleged fraud, claiming it affected over 40,000 people and caused losses exceeding $4 billion. One developer of the cryptocurrency also blamed Milei for the project's sudden collapse, accusing him of withdrawing support.

While experts believe impeachment is unlikely, the scandal could damage Milei's economic credibility ahead of the 2025 midterm elections. In a social media post, Milei blamed his political opponents for the controversy, asserting his determination to confront them.