Argentina’s President, Javier Milei, admitted to making a mistake on Saturday after he promoted a cryptocurrency, $LIBRA, whose value soared before rapidly crashing.
This led to widespread criticism and an official investigation into the incident. On Friday evening, Milei posted a message on social media platform X, praising the cryptocurrency project as a “private initiative” aimed at stimulating Argentina’s economy by financing small businesses and entrepreneurs.
The post included the cryptocurrency’s name and a website for the project.
Within hours, the cryptocurrency’s value surged, but it later collapsed. In response, Milei deleted the post, stating that he had not been fully aware of the project’s details and, upon learning more, decided to discontinue promoting it.
He clarified that he had “no connection” with the company behind the project.
Economists, crypto specialists, and opposition figures swiftly criticised Milei. Many feared that the digital asset could be a fraud or a Ponzi scheme. Industry experts labelled the event a “rug pull,” where developers attract investors before quickly cashing out.
The Kobeissi Letter, an entity that analyses global markets, reported that, within minutes, large holders began liquidating millions of dollars worth of $LIBRA as its market value peaked at $4.6 billion. Shortly after, the coin’s value plummeted.
In response to the incident, the Argentine presidency announced an urgent investigation.
The statement confirmed that Milei would involve the Anti-Corruption Office to assess whether any improper conduct occurred, either by himself or members of his government.
The president’s office also set up a task force to investigate the cryptocurrency’s launch, as well as any individuals or companies involved.
Javier Smaldone, a computer scientist known for exposing pyramid schemes, described the operation as a “global scam” on social media.
He revealed that profits from the operation had reached approximately $107 million, with the potential for higher figures.
Criticism also came from political figures. Former president and opposition leader Cristina Kirchner labelled Milei a “crypto-scammer.”
Maximiliano Ferraro, of the centre-right Civic Coalition, called for the creation of a special inquiry commission in Parliament to clarify the facts and assign responsibility.
Meanwhile, Francisco Onato, Milei’s personal lawyer, defended the president. He argued that Milei had merely highlighted the project in an effort to stimulate the economy and that his actions did not constitute a crime, as there was no intention to commit wrongdoing.
