Argentina’s $LIBRA cryptocurrency is at the heart of a developing issue that is closely examining President Javier Milei’s leadership.
Milei, who is renowned for his free-market ideas, started the debate in February 2025 when he openly endorsed $LIBRA, a digital currency developed by businessman Hayden Mark Davis and supported by KIP Protocol. The goal of Milei’s endorsement was to help Argentina’s small and medium-sized enterprises, which are beset by economic uncertainty and excessive inflation.
After Milei’s support, $LIBRA immediately became well-known and saw a sharp increase in value, momentarily hitting a $4.5 billion market valuation. The enthusiasm, though, was short-lived. Investors suffered large losses as $LIBRA’s value fell by about 89% in a matter of hours. The cryptocurrency’s authenticity and motivations were called into question by its abrupt fall.
Investigations revealed that wallets associated with $LIBRA had earned significant gains before to the crash, with more than $100 million taken out right before the value fell. This sparked fears of a “rug pull,” a swindle in which developers abandon a project after embezzling money from investors.
Javier Milei, the president of Argentina, has come under fire for supporting the cryptocurrency token $LIBRA, whose price skyrocketed and then plummeted in a few hours, causing several investors to suffer large losses.
The aftermath of the downfall of $LIBRA has been fast. At first, Milei praised the coin, saying it was a sound effort to support the Argentinean economy. He denied any personal financial participation and removed his posts about $LIBRA as the situation deteriorated, however, further distancing himself from the enterprise. Amidst mounting criticism, Milei demanded an inquiry to ascertain whether he and other government officials were complicit in any misconduct.
Political outrage has been generated by the incident, and the opposition parties in the nation have called for Milei’s impeachment.
In Argentina, the controversy has generated intense political discussion. Leaders of the opposition have demanded Milei’s impeachment and accused him of engaging in fraudulent operations. Trust in the government’s capacity to oversee the economy has also been eroded by the scandal, particularly given the nation’s ongoing financial crisis. Judge María Servini is now in charge of the inquiry of the legal complaints that have been submitted.
According to Milei’s principal political rival and former president of Argentina, Cristina Fernández de Kirchner, thousands of people who had put their faith in him lost millions of dollars, “while many made fortunes due to privileged information.” Milei has refuted the claim that he advertised a hoax, though.
