President Javier Milei is embroiled in a significant political crisis following his promotion of the cryptocurrency $LIBRA, which has been labeled a fraudulent scheme. The incident has led to widespread financial losses among investors and has prompted legal and political challenges against the president.
On February 14, 2025, President Milei endorsed $LIBRA through his social media channels, leading to a rapid surge in the cryptocurrency’s value. However, shortly thereafter, major stakeholders withdrew approximately $90 million, causing the currency’s value to plummet and leaving numerous investors with substantial losses. In response to the backlash, Milei deleted his promotional posts and claimed a lack of detailed knowledge about the project, describing the cryptocurrency market as akin to a “casino.” This explanation has been met with criticism, with many accusing the president of irresponsibility and negligence.
The scandal has intensified as federal judge María Romilda Servini initiated an investigation into Milei’s involvement in the $LIBRA promotion. Additionally, the U.S. Federal Bureau of Investigation (FBI) has joined the probe due to complaints from American citizens affected by the collapse. The opposition has seized the moment to call for impeachment proceedings, alleging that Milei’s actions constitute a severe breach of public trust.
Financial markets have reacted to the turmoil, with Argentina’s main stock index experiencing a 5.6% decline following the scandal. Analysts suggest that while the immediate economic impact may be contained, the long-term effects on investor confidence and political stability could be profound.
This incident is not the first time President Milei has been linked to controversial financial promotions. In 2021, as a national deputy, he endorsed CoinX, a platform later accused of operating a Ponzi scheme. The recurrence of such events has raised questions about Milei’s judgment and the ethical implications of a sitting president promoting high-risk financial ventures.
As the investigations proceed, President Milei’s administration faces mounting pressure to address the allegations transparently. The outcome of this scandal may have lasting implications for his presidency and Argentina’s political landscape.
Sources:
- Argentine President’s Promotion of Crypto Rocks His Presidency
- Milei se esconde
- El FBI se une a la investigación contra Milei por la estafa de criptomonedas mientras la Justicia argentina investiga el caso
- Argentina federal judge to probe Milei crypto scandal, stock index falls
- $LIBRA cryptocurrency scandal
