Argentine President Javier Milei is at the center of a major political and financial scandal after allegedly promoting the cryptocurrency $LIBRA, which later collapsed, causing thousands of investors to lose money. This controversy has led to calls for impeachment, investigations by U.S. authorities, and concerns over Argentina’s economy.
What started as a social media post has now turned into one of the biggest political crises of Milei’s presidency. Here’s everything you need to know about the $LIBRA scandal, the potential legal consequences, and how this affects Argentina’s financial stability.
Milei and the $LIBRA Token
On February 14, 2025, Javier Milei shared a post on X (formerly Twitter) mentioning $LIBRA, a new cryptocurrency that had been gaining traction. Soon after his post, the token’s value skyrocketed, as thousands of investors rushed to buy in, believing that the endorsement of Argentina’s President was a strong signal of legitimacy.
However, within 48 hours, the token’s value collapsed, wiping out millions of dollars in investments. This sudden crash led to accusations that $LIBRA was a fraudulent scheme, commonly known as a "rug pull", where developers artificially inflate a cryptocurrency’s value before selling off their holdings and leaving investors with worthless tokens.
Political and Legal Fallout
The opposition in Argentina has accused Milei of misconduct, with some lawmakers calling for his impeachment. Critics argue that, as a sitting President, Milei should not have been involved in promoting financial assets, especially one as volatile as cryptocurrency.
Milei, however, has denied any wrongdoing, stating:
“I did not promote $LIBRA. I only shared information. Investors must take responsibility for their own financial decisions.”
Despite his defense, the scandal has gained international attention, with U.S. authorities launching their own investigation. The FBI and the U.S. Financial Security Department are looking into claims made by American investors who lost money in the crash.
In addition, Hayden Mark Davis, a businessman associated with the $LIBRA project, has admitted to using insider information to sell off large amounts of tokens before the crash. He has since claimed he fears for his safety and is cooperating with investigators.
How the $LIBRA Scandal Affects Argentina
This controversy has deepened Argentina’s economic troubles, which were already affected by high inflation and currency devaluation. The immediate consequences of the scandal include:
Stock Market Drop – Argentina’s main stock index fell by 5% following the news.
Peso Devaluation – The Argentine peso weakened against the U.S. dollar, raising concerns about further financial instability.
Investor Uncertainty – Many local and foreign investors are now questioning Argentina’s regulatory policies on digital assets.
This scandal has shaken confidence in Milei’s leadership, especially among economic experts and international investors. Some analysts believe that if Milei does not restore stability quickly, Argentina’s financial markets could face further downturns.
Is Impeachment Possible?
Despite growing criticism, it is unlikely that Milei will be impeached. His political allies still hold enough support in Congress to block any removal attempts. However, this scandal has damaged his credibility, making it harder for him to pass key economic reforms.
In the coming weeks, we can expect:
Deeper Investigations – Both Argentine and U.S. authorities will continue looking into the financial transactions related to $LIBRA.
More Public Protests – Citizens and opposition groups are likely to organize demonstrations calling for government accountability.
Further Economic Repercussions – Investors may pull out of Argentine markets, fearing policy instability under Milei’s administration.