Javier Milei, President of Argentina, faces scrutiny following a cryptocurrency scandal involving the LIBRA token, implicating his administration in promoting a fraudulent scheme impacting investors since early 2025.
The scandal exposes vulnerabilities in Argentina's crypto market, eroding trust and stalling regulatory developments, despite robust institutional interest in digital assets and ongoing political fallout surrounding his leadership approach.
Javier Milei's crypto endorsement leads to major losses in Argentina, sparking regulatory concerns.
President Milei's Endorsement Sparks LIBRA Crash
Milei’s endorsement of LIBRA resulted in a severe market impact, with over 114,000 wallets affected after the price crash, and investor trust severely shaken. The economic toll remains deep, marking a significant downturn for Argentina’s crypto sector.
Javier Milei, Argentina's President since 2023, is at the center of a crypto scandal involving the LIBRA token. His public endorsement saw a price surge followed by market crash, suggesting a rug pull scenario.
The scandal implicates Karina Milei, his sister, and influential business operators. Their close involvement with LIBRA's developers hints at corruption. Milei's strategy is criticized due to a lack of coherent crypto policy.
Over 114,000 Crypto Wallets Affected in Fallout
Potential outcomes include severe regulatory scrutiny and delayed crypto service launches. A Congressional report criticizes Milei's administration for damaging Argentina’s crypto reputation. Gabriel Campa notes ongoing banking interest but awaits regulatory clarity.
Scandal Echoes Global Crypto Fraud Cases
This incident mirrors previous global crypto pump-and-dump scandals. Unlike typical cases, the direct involvement of a president in such a large-scale fraud is rare. The scandal adds to a series of setbacks in Argentina's budding crypto framework.
Expert Carlos Maslatón emphasized Milei's superficial knowledge of Bitcoin, leading to a weak crypto agenda. Analysts foresee stricter regulations and further investor skepticism amidst expectations for clearer governmental stance on digital assets.