Argentina has once again found itself at the crossroads of financial crisis and political controversy, but this time, cryptocurrency is at the center of the storm. President Javier Milei is facing serious fraud allegations and impeachment threats after promoting the digital token $LIBRA on social media. His endorsement sent the coin’s price soaring, but within hours, he deleted the post, triggering a massive crash that left investors with heavy losses.
The fallout has been swift and severe. Investors, opposition politicians, and legal experts are accusing Milei of engaging in market manipulation, with some labeling the incident a “rug pull”—a deceptive scheme where a coin is hyped up and then abandoned, leading to a crash. Meanwhile, the Anti-Corruption Office has launched an investigation, and opposition leaders are pushing for impeachment, calling the situation an “unprecedented scandal.”
With Argentina already struggling with economic instability, this crypto controversy has added another layer of uncertainty. The crisis raises serious questions about the role of political figures in financial markets, the risks of cryptocurrency investment, and the ethical responsibilities of public officials.
The Rise and Fall of $LIBRA
On February 16, 2025, Milei posted on X (formerly Twitter), endorsing $LIBRA, a newly launched cryptocurrency. In his post, he described the token as a tool to fund small businesses and startups—an attractive proposition in a country desperate for economic growth. To reinforce his message, he included a direct purchase link, leading many to believe the cryptocurrency had government backing.
The response was immediate. Within minutes, traders and retail investors rushed to buy $LIBRA, causing its price to skyrocket. Many people saw this as a once-in-a-lifetime opportunity, assuming that Milei’s influence would ensure the coin’s long-term success.
However, just a few hours later, Milei deleted the post, offering no explanation. The sudden reversal shattered investor confidence, triggering a mass sell-off that caused the coin to crash to nearly zero. The losses were catastrophic—some investors lost their entire savings within hours.
The dramatic rise and fall of $LIBRA led to widespread outrage, with critics questioning why Milei had promoted the coin in the first place and whether he or his associates had profited from the brief price surge.
Fraud Allegations and Legal Action
Following the crash, legal experts and investors took action, filing fraud complaints in Argentina’s criminal court. One of the leading plaintiffs, Jonatan Baldiviezo, stated:
“The president’s actions were essential in committing the crime of fraud. Investors believed in the project because of his influence, and now they have lost everything.”
Some experts believe that if Milei is found guilty of financial misconduct, he could face criminal charges, heavy fines, or even removal from office. Others argue that the incident highlights the urgent need for regulations preventing government officials from promoting unverified financial products.
In response to public backlash, Milei’s office denied any wrongdoing, stating that he had no direct involvement in the cryptocurrency’s creation. According to a statement released on February 17, the post was deleted to prevent “unnecessary speculation” and to avoid misleading the public. The Anti-Corruption Office has now opened an official investigation, which will examine whether Milei or any government officials financially benefited from the price surge.
Political Repercussions: Impeachment on the Horizon?
As expected, Milei’s political opponents have seized the moment, using the scandal to launch fresh attacks on his leadership. Former President Cristina Fernández de Kirchner was among the most vocal critics, calling him a “crypto scammer” in a viral post that amassed over 6.4 million views.
Argentina’s main opposition coalition has labeled the incident “one of the biggest financial scandals in recent history” and announced plans to file an impeachment request. Esteban Paulón, a senior opposition figure, confirmed that he and other lawmakers would push for an inquiry into Milei’s role in the crypto collapse.
If the impeachment process gains momentum, it could plunge Argentina into deeper political instability. Given the country’s fragile economy and Milei’s aggressive reform agenda, a prolonged political battle could stall key policies, shake investor confidence, and worsen social unrest.
However, Milei’s supporters argue that the controversy is being blown out of proportion by the opposition. Some claim that he made an honest mistake by endorsing the cryptocurrency and that there is no concrete evidence linking him to fraudulent activity. Regardless, the damage to Milei’s credibility is undeniable, and the coming weeks will be critical for his presidency.
The Bigger Picture: Crypto’s Role in Argentina’s Economy
Argentina has one of the highest cryptocurrency adoption rates in the world, largely due to hyperinflation and distrust in the peso. Many citizens have turned to Bitcoin, stablecoins, and altcoins as a way to protect their savings from Argentina’s notorious currency devaluation.
However, the $LIBRA scandal could mark a turning point for crypto’s role in Argentina. The incident has exposed the dangers of investing in new, unregulated tokens, especially when promoted by high-profile public figures. Regulators may now push for stricter policies on crypto advertising and government officials endorsing financial assets.
Meanwhile, global crypto markets are watching closely. The influence of political leaders on digital assets is a growing concern, and Milei’s case could set a precedent for how governments handle similar incidents in the future.
Conclusion
With an official investigation underway and impeachment calls gaining traction, Milei’s political future is uncertain. If fraud allegations escalate, he could face legal consequences that undermine his administration. If he survives the scandal, his government will still have to rebuild public trust—both in his leadership and in Argentina’s economy.
In the meantime, the global financial community is watching as this crisis unfolds. The outcome could reshape the conversation around political figures and cryptocurrency, influencing regulatory decisions not just in Argentina, but worldwide.
One thing is clear: this scandal has shaken Argentina’s political and financial landscape, and its consequences will be felt for years to come.
FAQs
What happened with the $LIBRA cryptocurrency?
President Milei promoted $LIBRA, causing a price surge, but later deleted his post, triggering a crash. Investors lost money, leading to accusations of fraud and market manipulation.
Why is Milei facing impeachment threats?
Opposition leaders accuse him of promoting a fraudulent financial scheme, which led to massive investor losses. They argue that his actions warrant legal and political consequences.
What is a “rug pull,” and is Milei guilty of it?
A “rug pull” is when a cryptocurrency is hyped, its value spikes, and then the creators abandon the project, leaving investors with worthless assets. Some critics claim Milei’s actions resemble this scheme, but his involvement is still under investigation.
How does this affect Argentina’s economy?
The scandal has damaged confidence in Argentina’s financial markets and could lead to stricter cryptocurrency regulations, affecting investors and businesses alike.