President Of Argentina, Javier Milei, Embroiled In Alleged Crypto Scam Controversy.
This month in a still developing story, Argentine President Javier Milei has found himself at the center of a major controversy following his endorsement of the cryptocurrency $LIBRA. Marketed as a digital asset supporting small businesses and startups, $LIBRA surged in value after Milei promoted it on social media. However, when the president suddenly deleted his posts, the token’s price collapsed, resulting in substantial losses for approximately 40,000 investors.
A group of Argentine lawyers filed criminal fraud charges against Milei, accusing him of orchestrating a rug pull. They allege that Milei’s public endorsement artificially inflated $LIBRA’s value, and his abrupt withdrawal of support triggered the collapse. The situation attracted international scrutiny as the FBI and the U.S. Department of Financial Security launched investigations following complaints from U.S. investors who suffered losses. Argentine Judge María Servini is overseeing a domestic inquiry to determine Milei’s role and whether other officials were involved.
The political fallout has been swift. Opposition leaders have called for Milei’s impeachment, accusing him of using his office to manipulate the market for personal gain. Meanwhile, public opinion is sharply divided, with some viewing the president’s actions as reckless while others argue he is being scapegoated for broader market volatility.
Milei denies any wrongdoing, claiming he withdrew his support for $LIBRA after discovering concerns about the project’s legitimacy. He asserts that his promotion was a misjudgment rather than a deliberate scheme to defraud investors. Despite his defense, the scandal has damaged his approval ratings and added tension to Argentina’s already fraught political climate.
This case has sparked renewed debate within the crypto community about the risks of high-profile endorsements and their impact on market manipulation. Investors and regulators alike are watching closely, as the outcome could influence future policy on cryptocurrency promotions and financial accountability from public figures.