Argentina’s President, Javier Milei, admitted on Saturday that he made a mistake in promoting a cryptocurrency, $LIBRA, whose value surged before suddenly crashing.
The incident led to widespread criticism and an official investigation. On Friday evening, Milei posted a message on social media platform X, describing the cryptocurrency as a “private initiative” aimed at boosting Argentina’s economy by financing small businesses and entrepreneurs.
His post included the cryptocurrency’s name and a link to its website.
Within hours, the cryptocurrency’s value skyrocketed but later collapsed. In response, Milei deleted the post and clarified that he had not been fully aware of the project’s details. Once he learned more, he decided to stop promoting it.
He emphasized that he had “no connection” with the company behind the project.
Economists, crypto specialists, and opposition leaders swiftly criticized Milei. Many feared the digital currency could be fraudulent or a Ponzi scheme. Industry experts called the incident a “rug pull,” where developers attract investors and then quickly cash out.
The Kobeissi Letter, an entity that analyzes global financial markets, reported that within minutes, major investors 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, the Argentine presidency announced an urgent investigation.
The statement confirmed that Milei would involve the Anti-Corruption Office to assess whether any misconduct occurred, either by himself or members of his government.
Additionally, the president’s office established 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 Ponzi schemes, described the event as a “global scam” on social media.
He revealed that the profits from the operation had already reached approximately $107 million, with potential for further increases.
Political figures also voiced strong criticism. Former president and opposition leader Cristina Kirchner labeled Milei a “crypto scammer.”
Maximiliano Ferraro, from the center-right Civic Coalition, called for a special inquiry commission in Parliament to clarify the facts and determine accountability.
Meanwhile, Francisco Onato, Milei’s personal lawyer, defended the president, stating that Milei had merely highlighted the project in an effort to stimulate the economy. He argued that his actions did not constitute a crime, as there was no intent to engage in wrongdoing.
