In February 2025, Argentine President Javier Milei promoted a new cryptocurrency called $LIBRA on social media, pitching it as a private effort to support Argentina’s economy and small businesses. The announcement sent the token skyrocketing in value, with the price jumping from mere cents to nearly five dollars within hours.
But just as quickly as it rose, $LIBRA crashed—wiping out millions in investor funds. Within a day, the token collapsed, triggering widespread allegations of a coordinated “rug pull.” The backlash was immediate. Milei deleted his post and claimed he had no real knowledge of the project. However, his silence did little to calm the outrage.
The political consequences are escalating fast. Opposition politicians are calling for impeachment, accusing the president of undermining national credibility and enabling financial fraud. Meanwhile, lawsuits are mounting. A group of investors from Argentina, the U.S., and the U.K. have filed legal claims seeking millions in damages, saying they were misled by Milei’s endorsement.
To make matters worse, Milei’s sister Karina—who also holds a top government role—has been linked to the project and summoned to a legal mediation over her alleged involvement. Investigators are digging deeper, probing for potential crimes like fraud, abuse of power, and bribery.
Internationally, Argentina’s reputation is taking a hit. What was once seen as an innovative financial experiment has quickly turned into a global embarrassment. Crypto watchdogs are demanding stricter oversight of political figures promoting digital assets, and Argentina is finding itself under a regulatory microscope.
The $LIBRA debacle is more than just a bad investment. It’s a stark reminder of how fragile public trust can be when politics and cryptocurrency mix without transparency. As the scandal continues to unfold, it stands as a warning to other nations experimenting with digital finance—and to every public figure thinking about hopping on the crypto bandwagon without doing their homework.