Argentina’s President Javier Milei is under fire after his endorsement of the cryptocurrency $LIBRA sparked allegations of a pump-and-dump scheme. The digital token, initially hailed by Milei as a potential economic game-changer, has become a symbol of political turmoil in the South American nation.
The controversy began when Milei promoted $LIBRA via a post on the social media platform X. The endorsement sent the meme coin’s value soaring briefly, only to plummet within a day. Investors suffered massive losses, with the coin’s market capitalisation dropping by 65.43%—from $223.69 million on February 14 to $77.32 million on February 15. Although $LIBRA has since recovered some ground, trading 34.8% higher at $0.4624 as of February 17, the damage was already done.
Political Fallout and Investor Outrage
Critics, including former President Cristina Fernández de Kirchner, have accused Milei of enabling financial fraud through his public support of $LIBRA. Kirchner, now a leading opposition figure, claimed that insiders with privileged information profited while ordinary citizens lost millions. She has joined others in calling for Milei’s impeachment.
The President’s links to $LIBRA are under intense scrutiny. Media reports reveal that the token was created just minutes before Milei’s endorsement. This timing has raised questions about his potential ties to Kelsier Ventures, the crypto investment firm behind the token, led by CEO Hayden Davis. Despite initially promoting $LIBRA as a tool to boost Argentina’s economy and support small businesses, Milei later deleted his post and denied any connection to the scheme.
Government Launches Investigation
Facing mounting pressure, the Argentine government has announced the creation of a special investigation task unit. The unit will probe $LIBRA’s launch and the individuals and companies involved. According to an official statement, the task force will focus on crypto assets, financial practices, and potential money laundering tied to the scandal.
This investigation marks a critical moment for Milei’s administration, which has already faced challenges in addressing Argentina’s severe economic crisis. The President’s handling of the $LIBRA debacle has not only shaken public trust but also cast a shadow over his broader economic policies.
As the story unfolds, one thing is clear: the $LIBRA controversy has left a mark on Argentina’s political landscape, blending the volatile world of cryptocurrency with the high stakes of national governance. Whether Milei can weather this storm remains to be seen.
