While Argentina’s firebrand President Javier Milei built his reputation as a champion of free markets, his recent endorsement of the $LIBRA cryptocurrency has landed him in hot water.
The cryptocurrency, launched on February 14, 2025, by Kelsier Ventures, was promoted as a project to fund private ventures in Argentina. Milei immediately jumped on the bandwagon, praising it on social media as supporting the Argentine economy.
Big mistake. Hours later, Milei deleted his endorsement. Too late. The damage was done. The cryptocurrency’s value had already skyrocketed by 1,300%, reaching a market cap of $4.5 billion before spectacularly crashing by over 95%. Classic rug pull.
Over 40,000 investors lost approximately $250 million in what’s now being called “Cryptogate.” The fallout has been swift and brutal. More than 100 criminal complaints have been filed against Milei, with opposition politicians calling for his impeachment.
The U.S. Department of Justice is investigating, and an Argentine law firm has reported the case to the FBI. Milei’s approval rating dropped four points, and 77% of Argentines believe the incident warrants investigation.
Key figures in the scandal include Hayden Davies, CEO of Kelsier Ventures, and Mauricio Novelli, Milei’s advisor. The founders held 70% of total supply and quickly dumped their tokens when prices peaked. There are also whispers about the president’s sister, Karina Milei, having some involvement.
Diógenes Casares of Stream Finance and American analyst Nick O’Neill, who claims insider knowledge, round out the cast of characters in this crypto drama. Unlike legitimate crypto ETFs, which offer regulated exposure to digital assets with enhanced investor protection, $LIBRA lacked any such safeguards. Milei insists he was deceived.
Says he knew nothing about the project details. Just a honest mistake, folks! Meanwhile, his government scrambled to contain the damage, ordering the Anti-Corruption Bureau to investigate and creating a special “Unit for Investigation Tasks” within the Presidency.
Former presidents are having a field day criticizing Milei’s judgment. As for the investors who lost millions? They’re not buying the president’s excuses. Some lost up to $5 million each.
Milei has compared the investment risks to gambling in casinos, dismissing any personal responsibility for the financial losses incurred by investors.
Viva la libertad? More like viva la cryptocurrency scam.
