President Javier Milei of Argentina is currently embroiled in a significant controversy following his promotion of a cryptocurrency named $LIBRA on his social media platforms. On Friday, Milei endorsed $LIBRA, describing it as a project aimed at "encouraging economic growth by funding small businesses and startups." However, he deleted the post just hours later, leading to a sharp decline in the currency's value and resulting in substantial financial losses for investors. In response, Argentine lawyers have filed fraud charges against Milei, accusing him of participating in an illicit scheme to defraud investors. The President's Office has denied any involvement in the cryptocurrency's development, stating that Milei removed the post to prevent further speculation. The situation has escalated, with political opposition calling for impeachment proceedings against Milei, alleging misuse of his presidential position to promote the cryptocurrency. The case is expected to proceed with judicial review to determine any criminal conduct associated with the $LIBRA project. The controversy surrounding Argentine President Javier Milei and the fraud allegations over the cryptocurrency $LIBRA has escalated into a political and legal firestorm, with calls for impeachment and widespread accusations of financial misconduct. The situation involves a cryptocurrency crash, allegations of a "rug pull" scheme, and legal concerns regarding Milei’s ethical and legal responsibilities as president. 

The Promotion & Collapse of $LIBRA

On February 14, Milei posted on X (formerly Twitter) about the cryptocurrency $LIBRA, calling it a private initiative aimed at stimulating economic growth and funding startups. The cryptocurrency was developed by KIP Protocol and Hayden Davis and was linked to the website vivalalibertadproject.com, which referenced Milei’s famous libertarian slogan "Viva la Libertad!". Following Milei’s endorsement, the price of $LIBRA surged to almost $5.00, attracting a wave of investors eager to profit from the hype. Within hours, Milei deleted the post, after which $LIBRA’s value plummeted by 94%, wiping out millions of dollars in investor funds. Reports indicate that eight users walked away with most of the $4.5 billion market cap, raising suspicions of insider profit-taking. 

Consequently, Argentine lawyers Jonatan Baldiviezo and Marcos Zelaya, along with economist Claudio Lozano and engineer María Eva Koutsovitis, filed a criminal fraud complaint against Milei. They claim Milei’s actions fit a classic “rug pull” scheme, where: A cryptocurrency is promoted to attract investors. The price is artificially inflated. The project is abandoned or devalued, leaving investors with worthless tokens. The plaintiffs argue that Milei’s presidential influence was crucial in the scheme, leading to "an indeterminate number of frauds." Potential legal violations: Article 265 of Argentina’s Penal Code – prohibits public officials from using their position for financial gain (maximum penalty: 6 years in prison). Public Ethics Law – prohibits elected officials from endorsing private ventures. 

Milei’s Defense & Government Response

Milei’s Explanation: He denied prior knowledge of $LIBRA’s details. Claimed he deleted the post after being informed about the project’s risks. Accused political opponents of exploiting the situation to attack his presidency. Official Government Response: The Argentine Anti-Corruption Office (which reports to Milei) will investigate whether any crimes were committed. The Presidential Office confirmed that Milei had previously met with KIP Protocol representatives, but claimed he wasn’t involved in the project’s development. The government insists the deletion of the post was meant to prevent speculation and limit damage. KIP Protocol’s Response: Hayden Mark Davis, one of the developers, blamed Milei for $LIBRA’s collapse. In a video statement, he accused Milei of withdrawing support at the last moment, triggering the crash. 

The Argentine opposition sees the incident as a serious ethical and legal breach and is pushing for impeachment. The Civic Coalition Party and Socialist Party are demanding congressional hearings to investigate the president’s role. Constitutional experts argue that Milei’s actions violated multiple laws, including the Public Ethics Law. Former President Cristina Fernández de Kirchner called Milei a "crypto scammer", accusing him of using his presidential influence to manipulate the market. Key political moves: Socialist deputy Esteban Paulón announced he would file an impeachment request on Monday. Congress will debate whether to advance impeachment proceedings next week. The Impeachment Commission in Congress, however, is not currently operational, creating legal uncertainty about the next steps. 

Broader Political & Economic Implications

The international media, including CNN, The New York Times, Bloomberg, and El País, have covered the "Milei Crypto Scandal" extensively. Milei’s administration, already under pressure for economic policies, now faces a credibility crisis. B. Market & Investor Reactions Investors are closely watching how financial markets will react on Monday. The controversy raises questions about Argentina’s crypto regulations and the risks of government officials promoting digital assets. C. Public Protests & Political Backlash The fraud allegations come amid growing protests against Milei’s economic policies and libertarian ideology. LGBTQ+ groups, feminists, and labor unions have already been protesting Milei’s stance on “woke” issues. His opponents accuse him of authoritarian tendencies, further fueling public distrust. 

What’s Next?

Argentine criminal courts will decide on Monday whether to assign a judge to the fraud case and refer it to a prosecutor for further investigation. The Argentine Congress will debate whether to advance impeachment proceedings. It is expected that Argentina's markets will react to the crisis when trading resumes.

The $LIBRA cryptocurrency scandal has put President Javier Milei in one of the most politically vulnerable positions of his presidency. Critics argue that a sitting president endorsing a financial product carries significant influence and that Milei’s support artificially inflated the price of $LIBRA before its collapse, making his actions more than just a casual business promotion. This will likely be a key point of contention in the legal and political investigations to follow.The case is far from resolved, with legal battles, impeachment threats, and financial market reactions expected in the coming days. Whether this results in criminal charges, political consequences, or just another crisis in Argentina’s turbulent politics remains to be seen.