Argentine President Javier Milei has addressed the mounting accusations surrounding his involvement in the $LIBRA memecoin controversy. In a televised interview on Monday reported by Bloomberg,, Milei denied attempting to persuade anyone to buy the token, asserting that his only intention was to “spread the word” about a tool he believed could empower entrepreneurs.
Milei distanced himself from the scandal, stating, “I’m not an expert. My specialty is economic growth, with and without money,” highlighting that his endorsement stemmed from enthusiasm for technology and its potential to fund entrepreneurial ventures. According to Milei, his post was a gesture to support innovation rather than a financial recommendation.
During the interview, Milei downplayed the scale of local impact from the token’s collapse, claiming that at most, “maybe four or five” Argentines lost money, with the majority of affected investors being from China and the United States, according to DB Newswire.
Milei’s Promotion and Subsequent Retraction
On February 15, 2025, President Milei utilized his social media platform to highlight the new Memecoin, $LIBRA, describing it as a project aimed at “encouraging economic growth by funding small businesses and startups.” The endorsement led to a swift surge in the token’s value, briefly reaching a market capitalization above $4 billion. However, as concerns about the project’s legitimacy emerged, the cryptocurrency’s value plummeted, resulting in substantial financial losses for investors.
In response to the unfolding situation, Milei deleted his initial post, with sources claiming that he was not fully informed about the project’s specifics at the time of his endorsement and that upon learning more, he chose to withdraw his support to prevent further speculation and potential harm.
The incident has escalated into a legal and political crisis. Argentine lawyers have filed fraud charges against President Milei, accusing him of participating in an illicit association intended to commit fraud. The case has been assigned to Judge María Servini of Federal Court No. 1 in Buenos Aires, who will oversee the investigation without a specified deadline. In the political arena, opposition parties are calling for Milei’s impeachment, alleging misconduct and potential criminal activities. Despite these accusations, Milei maintains that he acted in good faith and that investors were aware of the inherent risks associated with cryptocurrency investments.
“It’s false that 44,000 people were affected—at most, it’s 5,000. The chances of there being Argentinians involved are very slim. These are highly specialized individuals in this type of financial instrument. Those who got involved knew the risks very well—they are volatility traders,” He said
Industry Implications and Market Response
This controversy adds to a high profile list of involvements of political figure in the Memecoin world, following the launch of $TRUMP and $MELANIA by the US first family. It is a pointer to the potential dangers of high-profile endorsements in the volatile cryptocurrency market. The rapid rise and fall of $LIBRA have drawn attention to the phenomenon of “rug pull” schemes, where a cryptocurrency’s value is artificially inflated before collapsing, leaving investors with significant losses.
In the aftermath of the $LIBRA incident, the broader cryptocurrency market has experienced fluctuations. As of February 18, 2025, major cryptocurrencies have shown varied performances:
- Bitcoin (BTC): Trading at $96,162, with a slight increase of 0.00113%.
- Ethereum (ETH): Priced at $2,712.08, reflecting a rise of 0.01820%.
- Solana (SOL): Valued at $177.32, experiencing a decrease of 0.04492%
Quick Facts:
- President Javier Milei promoted the $LIBRA cryptocurrency, which subsequently collapsed, leading to investor losses.
- Milei asserts he acted in good faith, aiming to support a private initiative, and withdrew his endorsement upon learning more about the project.
- Fraud charges have been filed against Milei, with an investigation led by Judge María Servini.
- The scandal has contributed to fluctuations in major cryptocurrencies, reflecting investor caution.
