Crypto Disaster Hits Argentina’s President: Legal Action Over $LIBRA Collapse

An Argentine judge has been assigned to investigate allegations of fraud against President Javier Milei following his promotion of the $LIBRA cryptocurrency, which experienced a rapid and dramatic decline in value shortly after its launch. Judge María Servini, of Federal Court No. 1 in Buenos Aires, will oversee the case, which centers on Milei's brief endorsement of the coin.

On Friday, Milei used his social media platform, X, to announce the launch of $LIBRA, describing it as a project aimed at boosting economic growth by funding small businesses and startups. The coin briefly surged to a market capitalization of $4 billion, but its value plummeted soon after, causing losses for many investors. Milei quickly deleted the post as the coin’s value continued to fall, sparking accusations that the launch could have been a scam, known as a "rug pull," where investors are lured in only for the value to be artificially inflated before a sudden collapse.

In response, Milei distanced himself from the cryptocurrency, stating that he was not involved in its creation or development. His office clarified that his post was intended to support entrepreneurial projects in Argentina and was part of his broader effort to encourage investment. The president’s office also emphasized that Milei had removed the post to avoid further speculation and media backlash.

Despite these statements, critics pointed to the coin’s launch site, which included the phrase “Viva la libertad!”—a slogan frequently used by Milei—and raised suspicions about his involvement in the project. Lawyers filed legal complaints accusing the president of playing a key role in what they call an illicit association aimed at defrauding investors. One of the plaintiffs, lawyer Jonatan Baldiviezo, claimed that Milei’s actions were essential to the fraud and described it as a coordinated scam.

In addition to the legal challenges, some opposition politicians have called for impeachment proceedings, citing the scandal as an unprecedented breach of trust. Former President Cristina Fernández de Kirchner criticized Milei harshly, branding him a "crypto scammer," while the opposition coalition pledged to pursue impeachment, calling the event a significant political scandal. The country’s Anti-Corruption Office, under the executive branch, will also investigate the matter to determine whether any wrongdoing occurred.

The controversy surrounding the cryptocurrency launch has severely damaged Milei’s credibility, especially with the upcoming 2025 midterm elections in mind. Some even argue that the president could be a victim of fraud himself, as he had promoted the cryptocurrency in good faith without knowledge of its collapse. However, the scandal has opened the door for political opponents to question his leadership, and the investigation is expected to continue for some time.