Imagine waking up to find your life savings wiped out overnight. One moment, your investment is soaring, endorsed by the highest office in the land. The next, it's worth nothing. Over 40,000 investors in Argentina now face this grim reality, with a staggering $4 billion vanishing into thin air. But here’s the shocking part—the man at the center of it all is none other than President Javier Milei.

The Rise and Fall of $LIBRA: A Presidential Endorsement Gone Wrong

On February 14, 2025, Milei took to social media to promote a cryptocurrency called $LIBRA, calling it a revolutionary project to boost Argentina’s economy. Within hours, the coin’s value skyrocketed, reaching a market cap of $4.56 billion as eager investors poured in their hard-earned money.

But just as fast as it rose, $LIBRA crashed—hard. Within hours, it had lost 94% of its value, leaving investors in ruins. Among them was a single investor who lost $17,000, believing in the promise of financial stability in a country struggling with economic turmoil.

A Rug Pull or Just a Terrible Mistake?

As the dust settled, accusations of a “rug pull” flooded the internet. A rug pull is a classic crypto scam where developers or insiders artificially pump up a token’s value, cash out, and leave investors with worthless coins. Many are now asking: Did President Milei knowingly set up thousands of Argentines for financial disaster?

Legal action was swift. Argentine lawyers have filed criminal fraud charges against Milei, while opposition leaders are threatening impeachment proceedings. Lawmaker Leandro Santoro has been vocal, calling for an immediate investigation and trial.

Milei’s Defense: A Convenient Denial?

As backlash mounted, Milei quickly deleted his promotional posts and distanced himself from the project. “I did not know the details,” he claimed. But critics aren’t buying it—how could a sitting president publicly endorse a financial product without fully understanding its implications?

In a desperate move, Milei has asked the Anti-Corruption Office to investigate not only the crypto collapse but also his own involvement. Some see this as a genuine attempt to clear his name; others view it as damage control to contain the political firestorm.

What Happens Next?

With billions lost and trust shattered, the fallout from the $LIBRA scandal is far from over. The investigations could jeopardize Milei’s presidency, and if found guilty of fraud, he could face serious legal consequences. Meanwhile, thousands of Argentine citizens are left picking up the pieces of what they believed was a golden opportunity—only to realize they may have been played by the most powerful man in the country.

Was this a catastrophic mistake or a calculated scam?

One thing is certain—this is a financial disaster Argentina will never forget.

Sources:

• AP News: Argentina’s Opposition Demands Investigation Into Milei's Crypto Promotion

• Reuters: Political Fallout From Milei’s Crypto Endorsement

• Huffington Post: The ‘Crypto Fiasco’ That May Cost Milei His Presidency