Argentina’s President in Hot Water After Promoting Failed Crypto Coin
Milei Under Scrutiny: Argentina’s President Faces Legal Probe Over Cryptocurrency Collapse
Editorial Team (ET)July 25, 2025
Argentine President Javier Milei finds himself at the center of a fraud investigation after briefly endorsing a cryptocurrency that collapsed mere hours after its launch. The $LIBRA digital currency, introduced as a tool to stimulate economic growth, saw an initial surge before plummeting, leading to massive financial losses for investors.
A judge in Buenos Aires has been assigned to the case, following legal complaints alleging Milei’s involvement in a fraudulent scheme. While the President has distanced himself from the project, critics argue that his endorsement contributed to misleading investors.
A Promising Start Turns Into a Rapid Decline
On Friday, Milei took to social media to promote $LIBRA, describing it as a financial innovation aimed at boosting small businesses and startups. The endorsement triggered a speculative frenzy, propelling the cryptocurrency’s market value to over $4 billion.
However, as skepticism grew and critics raised concerns over its legitimacy, the coin’s value nosedived. Within hours, Milei deleted his post, but the damage was already done—many investors were left with significant losses.
The cryptocurrency was developed by KIP Protocol and Hayden Davis, and was accessible through a website that played on Milei’s well-known phrase, “Viva la libertad!”—a slogan that resonates deeply with his libertarian supporters.
Legal Action and Political Fallout
By Sunday, lawyers in Argentina had filed fraud complaints, arguing that Milei’s actions played a pivotal role in encouraging investment in what quickly became a disastrous venture. Federal Judge María Servini is now leading the investigation, though no deadline has been set for her findings.
Jonatan Baldiviezo, one of the plaintiffs, stated that Milei’s involvement was key to an “illicit association” designed to defraud investors. While the President denies any wrongdoing, critics accuse him of reckless behavior at best and deliberate deception at worst.
Milei’s Defense: A Misunderstanding or Political Attack?
Milei has been quick to push back against the allegations. In an interview, he claimed that his post was intended to support entrepreneurial efforts in Argentina, as he does regularly. He also argued that investors knew the risks involved, likening the situation to speculative trading.
His administration has reiterated that he was not involved in the cryptocurrency’s creation and deleted the post only to prevent further speculation. Nevertheless, Argentina’s Anti-Corruption Office, which operates under the executive branch, has announced its own investigation into the matter.
A Test of Leadership Amid Economic Challenges
The controversy comes at a critical time for Milei’s presidency. Argentina is already grappling with economic turmoil, and this scandal adds another layer of uncertainty. His supporters view the accusations as politically motivated attacks designed to weaken his administration, while opponents see it as further proof of his unpredictable and unorthodox leadership style.
As the investigation unfolds, the case will test not just Milei’s credibility, but also the broader issue of political figures endorsing volatile financial products. Whether this turns into a full-blown crisis or fades into a footnote in Milei’s presidency remains to be seen.
