While Argentine President Javier Milei is no stranger to controversy, his latest scandal has taken a decidedly crypto-flavored turn. The firebrand leader’s social media promotion of ‘$LIBRA’ cryptocurrency has spectacularly backfired, leaving investors with losses estimated at US$250 million after the token’s dramatic collapse within hours. Eight wallets connected to the project extracted $107 million in liquidity before the catastrophic crash.
Milei’s defense? He merely “shared” rather than “promoted” the cryptocurrency. Right. The president claims he acted in good faith, comparing crypto investment to casino gambling. Because that’s exactly what you want to hear from your head of state about a financial instrument they endorsed. The resulting television interview only heightened suspicions with prearranged questions emerging as a concern.
The scandal has sparked dozens of legal complaints against Milei in both Argentina and the United States. Opposition lawmakers are pushing for impeachment proceedings, though they currently lack the votes. Even Milei’s political ally, the PRO party, has described the case as “very serious,” while former president Mauricio Macri has distanced himself faster than a cat from a water spray. Unlike fiat-backed stablecoins, $LIBRA lacked any real asset reserves to maintain stability.
The plot thickens with a cast of characters worthy of a Netflix series. There’s Hayden Mark Davis, the CEO of Kelsier Ventures and $LIBRA creator; Julian Peh, the Singaporean entrepreneur who launched the token; and Mauricio Novelli, an Argentine citizen with connections to both Milei and Davis.
Oh, and let’s not forget Karina Milei, the president’s sister and chief of staff, because apparently keeping it in the family is a political tradition.
The international fallout has been swift. While the Latin American right reconsiders Milei as their poster child, the U.S. right, including Elon Musk, continues to back him. The scandal has also raised serious questions about cryptocurrency regulation and the wisdom of political figures endorsing financial products.
For a president already pushing controversial economic reforms, this crypto debacle couldn’t have come at a worse time. With $4.5 billion in transactions during $LIBRA’s brief surge and subsequent collapse, it’s clear this story isn’t going away anytime soon.
Milei’s support has taken a significant hit, proving that in politics, as in crypto, what goes up must come down.
