ZoneBitcoin EditorialOn February 14, 2025, Argentine President Javier Milei sent shockwaves through the political and financial world by posting a message on his X account (formerly Twitter) promoting a new cryptocurrency called $LIBRA.
In his message, Milei touted the merits of a “private project” aimed at “stimulating the growth of the Argentine economy by financing small businesses and Argentine entrepreneurs.” He concluded his tweet with the phrase “The world wants to invest in Argentina. $LIBRA,” a direct reference to the new cryptocurrency.
The post immediately caught the attention of investors, cryptocurrency experts, and Milei’s political opponents. Indeed, it is rare for a head of state to openly promote a financial asset as volatile and controversial as a cryptocurrency, especially in a country like Argentina that is already experiencing many economic problems.
The initial excitement over Milei’s announcement quickly turned to suspicion and then outrage as details of the $LIBRA project began to emerge. Experts were quick to point out several suspicious elements that suggested the cryptocurrency could be a pyramid type scam.
The first suspicions and the collapse of $LIBRA
In the hours following Milei’s announcement, the value of $LIBRA saw a dramatic increase, from a few cents to nearly $5000. This dizzying increase caught the attention of many investors, but also aroused the suspicions of cryptocurrency experts.
Javier Smaldone, an Argentinian computer scientist and influencer known for his denunciation of pyramid scams, was one of the first to sound the alarm. On his X account, he declared: “The president has just publicly launched a global scam.” This statement quickly made the rounds on social networks and Argentine media.
Analysts quickly discovered that nearly 80% of $LIBRA tokens were held by a small group of insiders even before Milei’s announcement. This concentration of ownership is a classic sign of a scam.
After reaching its peak, the value of $LIBRA collapsed within hours, leaving many investors with considerable losses. According to Smaldone's estimates, the total amount of losses for this Rug Pull could amount to more than $110 million with more than 5000 wallets impacted.
Milei's retraction and the first explanations
Faced with the media and political storm that was beginning to form, Javier Milei quickly deleted his initial tweet and published a new message in which he attempted to distance himself from the $LIBRA project.
In this new post, the Argentine president stated: "I did not know the details of the project and after learning about it, I decided not to continue spreading it." He also assured that he had "obviously no connection" with the private company behind $LIBRA.
This attempt at retraction seems to be too easy a defense to calm the critics. Many observers have pointed out that it is unacceptable that a head of state can promote a financial project without knowing the details, especially given the economic stakes for Argentina. This is all the more shocking when the person concerned was an economist by profession.
The presidency quickly issued a statement announcing that the Anti-Corruption Bureau was investigating possible "inappropriate conduct by any member of the government, including the president." The move was intended to demonstrate the Milei administration's commitment to transparency, but it was also seen as an attempt to get ahead of the accusations that were beginning to pour in.
Opposition reactions and calls for impeachment
The political opposition was quick to react to the scandal, which some media outlets have called a "crypto-scandal." Cristina Kirchner, a former president and leading figure in the Peronist opposition, has been particularly vocal in her criticism.
On her X account, Kirchner called Milei a “crypto-scammer” and accused him of acting as “the hook for a digital scam.” She added: “This is your market freedom… the casino freedom. Your mask has fallen,” referring to Milei’s promises of economic liberalization.
The parliamentary group of the Union for the Fatherland (Peronist) in the Chamber of Deputies announced its intention to file a request for a "political trial" against Milei, a procedure that could potentially lead to his impeachment.
Other opposition parties, such as the centre-right Civic Coalition, have called for the creation of a special commission of inquiry to "clarify the facts and determine responsibilities". These demands reflect the perceived seriousness of the incident and the opposition's desire to gain political advantage from it.
The legal and ethical implications of the case
The $LIBRA case raises many legal and ethical questions regarding President Milei’s behavior. Several legal experts have pointed out that his promotion of a cryptocurrency could constitute a violation of Argentina’s Public Ethics Act.
In addition, some analysts have raised the possibility that Milei may have violated the Financial Institutions Act, or even committed crimes of money laundering and fraud. These accusations, if proven, could have serious consequences for the Argentine president.
The question of Milei's responsibility in this case is at the heart of the debate. Some defenders of the president, such as lawyer Francisco Onato, have tried to minimize his involvement by saying that "the president did not promote anything, he only celebrated the interest of a company in the Argentine market."
However, this line of defense has been widely criticized, notably by the daily La Nacion which considered that the "crypto scandal" left Milei "without any explanation that saves his responsibility."
Alleged links between Milei and $LIBRA promoters
One of the most troubling aspects of this case concerns the alleged links between Javier Milei and the promoters of the $LIBRA cryptocurrency. Photos circulating on social media show the Argentine president with Julian Pe, the CEO of Kip Network, the company behind the $LIBRA project.
The images, taken at various events, suggest that Pe is part of Milei's entourage, raising questions about the exact nature of their relationship and whether the president was aware of the project before it was publicly promoted.
The revelations have fueled speculation about possible collusion between Milei and $LIBRA promoters, reinforcing calls for a thorough investigation into the matter.
Likewise, it should be remembered that this is not the first time that Milei has promoted a crypto scam. In fact, shortly before his election, he had promoted a cryptocurrency on his social networks that turned out to be a notorious scam.
- Read the article : Is Javier Milei really the pro-bitcoin president he claims to be?
The impact on Milei's credibility and political agenda
The $LIBRA scandal has dealt a major blow to the credibility of Javier Milei, who was elected on a promise to fight corruption and turn around Argentina's economy. The affair calls into question his ability to govern ethically and responsibly.
Many political observers believe that this incident could seriously compromise Milei's economic reform agenda. His already controversial plan to dollarize Argentina's economy may be even more difficult to implement in this context of increased mistrust.
The "presidential word," as the newspaper La Nacion pointed out, appears to have been "demolished in record time," which could have lasting consequences for Milei's ability to rally the support needed for his future policies.
The consequences for the cryptocurrency market in Argentina
The $LIBRA affair also had significant repercussions on the cryptocurrency market in Argentina. The country, which has long suffered from rampant inflation and chronic currency instability, had seen growing interest in cryptocurrencies as an alternative to the Argentine peso.
However, this scandal risks dampening this enthusiasm and reinforcing distrust towards digital assets. Argentine regulators could be forced to tighten regulations on cryptocurrencies, which could have long-term consequences for the development of this sector in the country.
International reactions and the image of Argentina
The $LIBRA scandal also had repercussions beyond the borders ofArgentinaThe international community of investors and financial analysts has closely followed this affair, which has reinforced concerns about the political and economic stability of the country.
Several international media outlets have covered the case, highlighting the potential risks for foreign investors in Argentina. This negative publicity could have consequences for the country's ability to attract foreign investment, a crucial element for Milei's economic strategy.
Conclusion: A turning point in Milei's presidency
The $LIBRA affair represents a major turning point in Javier Milei's presidency. What began as a simple promotion on social networks has turned into a national scandal with potentially devastating implications.
The case raises important questions about ethics in politics, the regulation of cryptocurrencies, and the accountability of leaders in the digital age. It also highlights the challenges facing emerging economies like Argentina in their quest for financial stability and economic growth.
As the investigation continues and the political fallout continues to unfold, one thing is certain: the $LIBRA affair will leave an indelible mark on Milei's presidency and the Argentine political landscape as a whole.
