While Argentine President Javier Milei has built his reputation on bold economic moves, his latest venture into cryptocurrency promotion has sparked a full-blown political crisis. In what can only be described as a cryptocurrency catastrophe, Milei endorsed $LIBRA on social media, watched its market cap soar to $4 billion, then hastily deleted the post as the value plummeted. His Security Minister Bullrich vocally defended his actions. Talk about a digital disaster.
The fallout was swift and severe. Judge María Servini stepped in to investigate fraud allegations, while the Anti-Corruption Office launched its own probe. Opposition leaders, particularly the Union for the Homeland coalition, didn’t waste time calling for impeachment proceedings. The formal complaints were filed by Argentine lawyers on February 16, 2025. So much for a honeymoon period in office.
Behind the scenes, the cryptocurrency’s creators – KIP Protocol and American developer Hayden Davis – had crafted what looked suspiciously like a classic “rug pull” scheme. Unlike stablecoins designed for price stability, they created a highly volatile token that they even named after Milei’s signature slogan “Viva la libertad!” and marketed it through a sleek website.
Adding to the intrigue, Singapore-based businessman Julian Peh emerged as the main financier, while an enigmatic figure known only as “Meow” co-founded the involved crypto firm.
Milei’s defense has been predictably straightforward: he claims he acted in good faith and knew nothing about the cryptocurrency’s details. He’s painting himself as just another victim while pointing fingers at political opponents for exploiting the situation. Meanwhile, his supporters are crying foul, claiming the impeachment threats are just attempts to “overthrow” their leader.
The scandal’s implications stretch far beyond cryptocurrency markets. It’s eroding public confidence in Milei’s judgment and could impact Argentina’s negotiations with the IMF. Foreign investors are watching closely, and comparisons to Milei’s previous promotion of the failed business CoinX aren’t helping his case.
As lawyer Jonatan Baldiviezo pursues fraud charges and the investigation continues with no set deadline, one thing’s clear: Argentina’s political divide just got deeper. Who knew a single deleted tweet could cause such chaos?
