Argentine President Javier Milei has found himself at the centre of a crypto scandal after allegedly promoting a newly launched cryptocurrency, $Libra, which crashed shortly after his mention. The incident has sparked fraud allegations, potential legal action, and threats of impeachment from opposition politicians.

The Rise and Fall of $Libra

On Friday, Milei shared a post on X (formerly Twitter) containing a link to a site selling $Libra. Following his mention, the cryptocurrency surged in value, attracting a wave of investors eager to capitalise on its momentum. However, in a matter of hours, $Libra nosedived, leaving most investors with severe losses.

Critics argue that the launch bore similarities to a “rug pull” — a deceptive scheme where creators lure investors before abruptly ceasing trading and absconding with the funds. Milei quickly deleted his post, further fuelling speculation about his role in the incident.

Milei’s Defence: “I Acted in Good Faith”

Addressing the controversy in an interview with Argentine news channel Todo Noticias, Milei firmly denied any wrongdoing. He claimed his post was not an endorsement but merely a share, stating:

“I didn’t promote it, I merely shared it.”

He also compared investors’ losses to gambling, asserting that those who put money into $Libra did so at their own risk.

“If you go to a casino and lose money, what’s there to complain about when you knew the risks?” Milei remarked, dismissing accusations of fraud.

Political and Legal Fallout

Despite Milei’s defence, the fallout has been significant. The Argentine opposition has threatened impeachment proceedings, though analysts believe they lack the necessary votes to succeed. Meanwhile, a federal judge is now reviewing fraud allegations brought forward by multiple plaintiffs to determine if Milei should face charges.

The president’s office has maintained that Milei had no involvement in $Libra’s creation and has called on the Anti-Corruption Office to investigate his actions. While the case unfolds, the scandal threatens to distract Milei from his radical economic reform agenda.

The Road Ahead

Whether this controversy results in legal consequences for Milei remains to be seen. However, the incident serves as a cautionary tale about the risks of crypto investments, even when they appear to have high-profile backing. As Argentina navigates economic uncertainty, this scandal only adds to the political turbulence surrounding Milei’s presidency.