Argentine President Javier Milei is under intense scrutiny after endorsing the cryptocurrency $LIBRA, which saw a meteoric rise in value followed by a rapid collapse, leaving investors with massive losses. His social media post last week promoted the digital token as an economic opportunity for small businesses and entrepreneurs. Following his endorsement, $LIBRA’s value surged from nearly zero to $5, only to plummet hours later after Milei deleted his post amid public backlash.

The fallout has been severe, with critics accusing Milei of misleading investors. Political opponents and legal experts argue that his influence directly contributed to the speculative frenzy, and some lawmakers have gone as far as filing fraud complaints against him. The Popular Unity party has formally accused Milei of participating in a "rug pull"—a deceptive scheme in which a cryptocurrency is artificially inflated before being abandoned, leaving investors with worthless assets. In response, a judge has been assigned to investigate the allegations.

Milei, however, has dismissed the accusations, insisting that he had no direct involvement in the project. In a recent television interview with TN, he compared investing in cryptocurrencies to gambling, stating that people who choose to invest should be aware of the risks. “If you go to a casino and lose money, what claim do you have if you knew the risks?” he remarked. He emphasized that his intention was to spread awareness, not to directly promote the token.

Meanwhile, Kelsier, the company behind $LIBRA, has denied any wrongdoing, asserting that the project was legitimate. However, Hayden Mark Davis, a representative of KIP Protocol, which is linked to the cryptocurrency, accused Milei and his team of withdrawing support at a critical moment, leading to the market crash.

In an attempt to control the damage, the president’s office released a statement distancing him from the venture, maintaining that Milei was unaware of the token’s specifics and only intended to inform the public about a financial opportunity. The statement further claimed that he routinely shares updates on emerging business ventures and that the post was deleted to prevent speculation.

Despite these explanations, public outrage continues to grow. Legal experts argue that Milei’s actions raise ethical concerns about public officials endorsing speculative financial products. Political opponents have called for increased accountability, describing the incident as a sign of reckless governance. As the legal case unfolds, the controversy threatens to further erode Milei’s credibility and fuel opposition demands for stricter oversight of political figures’ involvement in financial markets.

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