Critics have accused Milei of involvement in the rapid rise and fall of a cryptocurrency, costing investors thousands.
Published On 18 Feb 2025
A judge in Argentina has been tasked with leading an investigation into President Javier Milei’s relationship with the cryptocurrency $LIBRA, amid allegations of fraud.
On Monday, Federal Judge Maria Servini was randomly chosen to helm the probe, which will look into whether Milei acted illegally.
Some opposition politicians have warned that Milei could even face an impeachment trial, depending on the outcome.
The scandal erupted on Friday, when the $LIBRA cryptocurrency was launched. Milei used his social media account on X to promote the crypto coin, saying it was designed to spur “economic growth by funding small businesses and startups”.
Bolstered by such high-profile support, the cryptocurrency briefly hit $4bn in market capitalisation. But its value quickly started to tumble, prompting some to call it a hoax or scam.
As $LIBRA’s value made a nose dive, Milei deleted his post.
Critics questioned whether this was an example of a “rug pull” scam, where the initial investors drive the value up, only to withdraw their investments suddenly, leading to a swift collapse of the currency.
Victims of such schemes are generally left with worthless coins, while the architect of the scam carries away profits from the height of the cryptocurrency’s value.
By Saturday, Milei’s office issued a statement distancing the president from $LIBRA, emphasising he was not involved in the currency’s development.
The statement also explained that Milei made a habit of promoting business ventures, including the cryptocurrency’s developer KIP Protocol, as part of his free-market