Fraud or Misstep? Argentine President Responds to $LIBRA Token Scandal

Argentine President Javier Milei denies any wrongdoing in the collapse of $LIBRA, asserting that his social media post was not an endorsement and blaming political opponents for exploiting the controversy.

Milei Refutes Claims of Endorsement

Argentine President Javier Milei has denied any involvement in fraudulent activities related to the cryptocurrency $LIBRA, which suffered a dramatic collapse shortly after he mentioned it in a social media post. The president asserted that his intentions were solely to support economic growth and entrepreneurship in Argentina.

On Friday, Milei shared a post on X (formerly Twitter) about $LIBRA, stating that the cryptocurrency aimed to boost Argentina’s economy by funding small businesses. His post included a link to a website selling the digital asset, which featured his well-known slogan, “Long live freedom.” Following his remarks, the token surged in value before plummeting, leading to significant financial losses for investors. Milei later deleted the post, citing uncertainties regarding the project.

Defending His Actions

Speaking on Argentine TV channel Todo Noticias on Monday, Milei defended his actions, emphasizing that he acted in “good faith.” He compared the investors’ losses to gambling risks, stating, 

“If you go to a casino and lose money, what’s there to complain about when you knew the risks?” 

The president also argued that his social media post did not constitute an endorsement but was merely an act of sharing information.

His administration clarified that the president was not involved in any phase of $LIBRA’s development and had removed the message to prevent further unintended exposure.

Political Fallout and Legal Challenges

The incident has triggered a wave of legal and political repercussions. Opposition leaders have accused Milei of being complicit in a fraudulent scheme and have filed multiple criminal complaints, including one with the U.S. Department of Justice. The Popular Unity political party, among others, lodged a formal complaint alleging that $LIBRA was part of a “rug pull” scam—a deceptive practice where developers inflate a token’s value before abruptly withdrawing funds and leaving investors with worthless assets.

A judge has been assigned to assess whether Milei should face fraud charges in connection with the incident. Meanwhile, critics have drawn parallels between this case and former U.S. President Donald Trump’s recent launch of the $TRUMP memecoin, which experienced a similar boom-and-bust cycle.

Government Response

In response to the backlash, the presidential office accused political adversaries of exploiting the situation for personal gain. It further announced that Argentina’s anti-corruption office had been directed to investigate the matter to ensure transparency and address public concerns.

Despite the growing controversy, Milei remains firm in his stance, dismissing allegations of wrongdoing while maintaining that his original intention was to highlight potential funding avenues for Argentine entrepreneurs.