Javier Milei, Argentina’s president, faces backlash after promoting the $LIBRA cryptocurrency, which collapsed dramatically, leading to accusations of fraud and potential legal consequences. Initially endorsing the initiative to support small businesses, he later retracted his support, claiming ignorance of its details. Critics, including former president Cristina Kirchner, labeled him a “crypto-scammer,” and calls for investigations into the scheme intensified, with suggestions of impeachment and the establishment of a special commission to clarify the situation.
Javier Milei and the Cryptocurrency Controversy
Javier Milei, the president of Argentina, is currently navigating a challenging chapter in his presidency following the promotion of a cryptocurrency that has since faced a dramatic downfall. This incident has prompted accusations of fraud, demands for investigations, and the possibility of legal repercussions. Milei, who has been in office for 14 months, took to social media platform X to endorse what he described as a “private project” intended to bolster the Argentine economy by funding small businesses and local entrepreneurs. His post included a link to “vivalalibertadproject.com,” aligning with one of his popular slogans: “Viva la libertad, carajo!” (Long live freedom, damn it!). He concluded his tweet by stating, “The world wants to invest in Argentina. $LIBRA,” referring to the cryptocurrency leveraging blockchain technology, which lacks real monetary backing.
Backlash and Calls for Accountability
Shortly after his enthusiastic endorsement, Milei retracted his original message, clarifying in a subsequent post that he was unaware of the project’s details prior to his promotion and thus chose to withdraw his support. He asserted that he had “obviously no link” to the so-called private company behind the initiative.
Criticism erupted from various economists and cryptocurrency experts in Argentina, as well as political opponents, who voiced concerns that $LIBRA might be a fraudulent scheme or a Ponzi operation. Javier Smaldone, a computer scientist known for exposing pyramid schemes, declared on X that the president had effectively launched a “global scam.” He characterized the situation as a “rug pull,” noting that the entire lifecycle of $LIBRA spanned merely two hours, during which approximately $4.4 billion was transacted.
Reports indicate that prior to Milei’s endorsement, around 80% of $LIBRA’s assets were concentrated in the hands of a select group of insiders. Following the president’s promotion, the value of the cryptocurrency skyrocketed from mere cents to an astonishing peak of $4,978. The Kobeissi Letter reported that within a few hours, over 50,000 wallets had been created for $LIBRA, but as initial holders began to sell, the value plummeted, resulting in profits of several million dollars. It’s estimated that around $107 million may have been siphoned off, with the total possibly being higher, according to Smaldone.
The political opposition wasted no time in responding, spearheaded by former president Cristina Kirchner, who branded Milei as a “crypto-scammer” and accused him of being the “bait of a digital scam.” She challenged him on X, asking, “Is this your market freedom… the casino’s? Your mask has fallen.” The Peronist parliamentary group announced intentions to file a request for a “political trial” against Milei, suggesting the possibility of impeachment.
Civic Coalition deputy Maximiliano Ferraro advocated for the establishment of a special investigative commission to “clarify the facts and determine responsibilities.” He highlighted that this was not the first time Milei has been linked to a fraudulent scheme, referencing a past incident in 2021 involving a crypto firm, CoinX, that came under judicial scrutiny.
In what appears to be an attempt at defense, Francisco Onato, identified as Milei’s personal lawyer, asserted on X that the president did not promote any particular project but merely celebrated a company’s interest in Argentina. He argued that there was no criminal intent present in Milei’s actions.
According to the conservative daily La Nacion, whether due to ignorance or something more concerning, the “crypto scandal” has left Javier Milei with little justification to absolve himself of responsibility. The newspaper concluded that “the presidential word has been demolished in record time.”