by Scott Emick
2/16/2025
In February 2025, Argentine President Javier Milei became embroiled in a significant controversy involving the promotion of a cryptocurrency known as $LIBRA. This incident has led to legal challenges and political turmoil within Argentina.
The Emergence of $LIBRA
On February 14, 2025, President Milei utilized his social media platform to endorse $LIBRA, a cryptocurrency developed by KIP Protocol and entrepreneur Hayden Davis. The project was presented as a means to stimulate economic growth by funding small businesses and startups. Milei’s endorsement led to a rapid surge in $LIBRA’s value, with its market capitalization soaring to approximately $4.5 billion. However, this surge was short-lived; within hours, the token’s value plummeted by over 90%, resulting in substantial financial losses for investors.
Legal Repercussions
In the wake of the cryptocurrency’s collapse, a group of Argentine lawyers filed fraud charges against President Milei. The plaintiffs accused him of engaging in an illicit association to commit fraud, asserting that his promotion of $LIBRA constituted a violation of the Public Ethics Law. They contended that Milei’s actions were instrumental in the scheme, which led to significant financial harm to numerous investors.
Political Fallout
The incident has also sparked political unrest. Opposition lawmakers have called for President Milei’s impeachment, arguing that his involvement in the $LIBRA promotion has caused international embarrassment and undermined public trust. Leandro Santoro, an opposition legislator, emphasized the severity of the situation, suggesting that it warrants a congressional impeachment trial.
Responses from Involved Parties
President Milei responded to the allegations by deleting his initial promotional post and stating that he was unaware of the project’s specifics at the time of endorsement. He claimed that upon learning more about $LIBRA, he chose to withdraw his support to prevent further speculation and potential harm. The President’s Office reinforced this position, asserting that Milei had no involvement in the cryptocurrency’s development and that the endorsement was part of his routine support for entrepreneurial initiatives in Argentina.
Conversely, Hayden Davis, representing KIP Protocol, accused President Milei of betrayal. Davis alleged that Milei’s sudden withdrawal of support and deletion of related social media posts instigated panic among investors, leading to the cryptocurrency’s abrupt collapse.
Current Status
As of February 16, 2025, the legal proceedings against President Milei are in the preliminary stages. A judge is expected to be assigned to the case, or it may be referred to a prosecutor for further investigation. The situation continues to evolve, with potential implications for Argentina’s political landscape and regulatory approach to cryptocurrencies.
