President Javier Milei Faces Scrutiny Over LIBRA Scandal as Argentina’s “Cryptogate” Deepens

Key Highlights

• Argentine President Javier Milei remains under scrutiny over the controversial $LIBRA cryptocurrency collapse
• The scandal began after Milei publicly promoted the token on social media before it rapidly crashed in value
• Critics and opposition lawmakers have described the episode as a potential “rug pull” or pump-and-dump scheme
• Investigations in Argentina reportedly focus on possible fraud, political responsibility, and connections between government associates and the token’s creators
• Milei denies involvement in the project and says he only shared information without understanding the full details
• The controversy has become one of the largest political scandals of Milei’s presidency and has damaged Argentina’s crypto image internationally
• Analysts say the case could influence future crypto regulation and political oversight in Argentina

Argentina’s cryptocurrency sector has been shaken by the ongoing “Cryptogate” scandal surrounding President Javier Milei and the failed $LIBRA token project. The controversy erupted after Milei promoted the newly launched cryptocurrency on social media in February 2025, triggering a dramatic surge in the token’s value before it rapidly collapsed within hours.

The incident immediately sparked accusations of market manipulation and allegations that the token resembled a classic rug-pull structure. According to blockchain analysis reports, the token’s creators reportedly controlled a large percentage of supply and sold significant holdings shortly after prices surged, contributing to massive investor losses.

Milei later deleted the promotional post and stated that he had no direct connection to the project. He argued that he merely shared information about what he believed was a private initiative intended to support Argentine businesses and startups.

Despite those denials, investigations and media reports have continued to intensify. Argentine opposition lawmakers called for inquiries into whether the president improperly used his public platform to promote a speculative financial asset. More than 100 criminal complaints related to alleged fraud were reportedly filed following the collapse of the token.

Attention has also focused on several individuals allegedly connected to the project, including businessman Mauricio Novelli and token creator Hayden Davis. Reports claim that close associates of Milei communicated with LIBRA-linked figures around the time the token launched, raising further political and legal questions about the administration’s involvement.

Leaked forensic reports cited by Argentine media allegedly show multiple phone calls between Milei, government officials, and individuals linked to the token immediately before and after the promotional posts were published. Investigators are reportedly examining whether those communications contradict public statements made by the president following the crash.

The collapse of $LIBRA reportedly wiped out substantial investor capital within hours. Blockchain analysis firms and investigators described the price action as consistent with highly speculative meme coin activity, with large insider-controlled wallets allegedly profiting while retail traders absorbed most of the losses.

Beyond politics, the scandal has had wider consequences for Argentina’s crypto industry. Local crypto advocates and entrepreneurs say the controversy damaged confidence in the sector at a time when Argentina had been positioning itself as one of Latin America’s most crypto-friendly markets.

Supporters of Milei argue that the president made a mistake rather than intentionally promoting a fraudulent project. Critics, however, contend that a sitting head of state publicly endorsing a speculative token created unacceptable risks for investors and undermined trust in both government and crypto markets.

The scandal has since evolved into one of the defining controversies of Milei’s presidency, fueling debates about political accountability, cryptocurrency regulation, and the growing intersection between digital assets and public office in emerging economies.