Federal Judge María Servini has escalated the investigation into Argentina’s $LIBRA cryptocurrency scandal by ordering the Central Bank to lift banking secrecy protections for President Javier Milei and his sister Karina Milei. The directive grants authorities access to their financial records, signaling mounting legal pressure over their alleged ties to the failed Solana-based memecoin.
The decision comes amid growing evidence linking the Milei siblings to the launch of $LIBRA, which surged after public endorsements—only to crash by over 90% within hours, wiping out hundreds of millions in investor capital. Investigators believe Karina Milei had direct contact with several of the token’s creators prior to its debut, raising alarms about possible insider activity or abuse of influence.
Dubbed “CryptoGate” by Argentine media, the scandal has become one of the country’s most high-profile crypto controversies. Critics argue President Milei’s public support for $LIBRA—followed by a swift retraction—gave the impression of state-backed legitimacy, encouraging widespread investment before the token collapsed.
In a parallel development, prosecutors are reviewing surveillance footage allegedly showing relatives of a $LIBRA co-founder removing valuables from bank vaults just after the crash. Several co-founders have already had their assets frozen, as the investigation now centers on financial fraud, market manipulation, and potential misconduct by public officials.
The case has sparked impeachment calls, prompting broader demands for oversight around crypto promotion by political figures.
$LIBRA: From Presidential Hype to Public Outrage
The fallout from President Milei’s brief but powerful endorsement of the $LIBRA token continues to shake Argentina’s political and financial foundations. Promoted as a private-sector innovation that would empower entrepreneurs and stimulate economic growth, the project instead triggered one of the region’s most devastating crypto implosions.
In mid-February, Milei publicly backed $LIBRA on X (formerly Twitter), and the token’s value skyrocketed—reaching a $4.5 billion market cap in hours. But less than a day later, its price collapsed by nearly 90%, erasing billions in paper value and sending shockwaves through Argentina’s crypto space.
More than 75,000 retail investors were reportedly affected, with total losses surpassing $250 million. Criminal fraud complaints flooded federal courts in the days that followed.
Milei quickly deleted his posts and claimed ignorance about the project’s inner workings. Still, his administration has struggled to contain the narrative, as critics accuse him of using political clout to influence speculative markets—whether intentionally or not.
Despite widespread backlash, Milei has downplayed the scandal, calling it a misunderstanding and framing himself as a tech-forward leader who “believes in innovation.” That defense has failed to satisfy lawmakers or investors now demanding accountability and stricter rules on crypto endorsements.
Quick Facts
- Judge María Servini ordered Argentina’s Central Bank to unseal President Milei’s financial records in the $LIBRA crypto case.
- The scandal stems from Milei’s public support of $LIBRA, which crashed by 90% hours after his endorsement.
- Over 75,000 investors were affected, with estimated losses exceeding $250 million.
- Investigators are probing possible fraud, insider activity, and political abuse of influence tied to the token’s launch.
