Javier Milei’s Crypto Scandal

Javier Milei, Argentina's newly elected president, is grappling with his first major scandal. On February 14th, he posted a message on X (formerly Twitter) praising a cryptocurrency called $LIBRA, claiming it would help fund "small companies and Argentine ventures." Within an hour, thousands of people jumped on the bandwagon, driving the price of the coin from 21 cents to a peak of $5.54—before it ultimately crashed.

The result? A wave of financial losses for investors. By February 17th, more than 100 criminal complaints were filed against Milei, accusing him of fraud. Argentina’s opposition party is now calling for his impeachment.

Milei has since attempted to distance himself from the cryptocurrency, claiming his post was not an endorsement and that he acted "in good faith" while admitting he wasn’t fully aware of the details of the coin. Ironically, however, his office has acknowledged that he regularly promotes businesses.

The $LIBRA project itself has a questionable track record. One of its key backers, Hayden Davis, was also involved in the launch of a cryptocurrency endorsed by Melania Trump in January, which lost 90% of its value within days. On February 15th, Davis referred to himself as "Javier Milei's adviser," claiming to be working with the president’s team. Milei’s office, however, has denied any formal connection to Davis.

This isn’t Milei’s first crypto-related misstep. In 2021, he promoted another cryptocurrency, CoinX World, on Instagram, only for it to be shut down by Argentine regulators shortly after.

Reports suggest that some insiders may have capitalized on prior knowledge of Milei's post. According to Buenos Aires Herald, one wallet purchased $1 million worth of $LIBRA exactly when Milei posted about it. Just 45 minutes later, that wallet sold the coins for a profit of $8.5 million.

While Milei’s crypto blunder echoes a similar misfortune experienced by Donald Trump—who launched his own cryptocurrency in January, only for its value to plummet—Milei's actions have drawn sharper criticism. His decision to follow in Trump's footsteps, including his controversial stance on withdrawing from the World Health Organization and considering leaving the Paris climate accords, is now under scrutiny. The $LIBRA saga serves as a reminder that imitating MAGA-style moves doesn’t always pay off.