Javier Milei’s Crypto Controversy: A Political and Financial Firestorm
Argentine President Javier Milei is at the center of a legal and political storm after endorsing—and then quickly retracting support for—a controversial cryptocurrency token, $LIBRA.
Preface
Argentine President Javier Milei is at the center of a legal and political storm after endorsing—and then quickly retracting support for—a controversial cryptocurrency token, $LIBRA. The move sent the token’s value skyrocketing before it abruptly collapsed, wiping out millions of dollars in investor funds.
Now, Milei faces more than 100 lawsuits from affected investors and politicians, with at least one criminal complaint filed before the FBI. Critics argue that his promotion of $LIBRA was not only irresponsible but potentially illegal, as elected officials are barred from advertising private financial ventures.
Impeachment Calls and ‘Rug Pull’ Allegations
Opposition leaders are comparing Milei’s actions to Donald Trump’s recent crypto launch and claim that this could be grounds for impeachment. Argentina’s fintech chamber has warned that this could be a classic “rug pull”—where developers pump up a crypto asset’s value before cashing out, leaving investors with losses.
Milei insists he had no personal ties to the token and accuses critics of playing politics. However, investigative journalist Hugo Alconada Mon (La Nación) reports that Milei has direct and indirect links to the individuals behind the project. While small investors lost big, a shadowy group of insiders allegedly walked away with between $87M and $107M.
What’s Next?
With mounting legal pressure and political backlash, Milei’s crypto gamble has turned into a national scandal. Will he be able to distance himself from the controversy, or is this the beginning of a deeper political crisis?
We have been very familiar with the project for a national cryptocurrency since the end of 2023 and have repeatedly published blogs, white papers and case studies on the subject. Exactly one year ago, we published the first summary of a feasibility study. When comparing the pros and cons, we tried to make it clear that the structures in Argentina did not appear to be adequate for such a step. Firstly, the technological infrastructure is not secure enough, as there is no capital available for continuous technological investments due to the extremely high inflation to date. Secondly, the psychological mentality is not ready for sustainable investments due to the economic crisis that has been raging for generations. The mentality of realizing extremely short-term profits and immediately running for cover is deeply rooted in large parts of society and makes investments seem like hussar pranks. Want to read the first paper again? Here is the link where it is currently published:
🔍 What do you think? Is this a case of political naivety, or something more serious? Let’s discuss. ⬇️
