Cryptogate: Milei and the $LIBRA Scandal

Translated by Valeria D’Alessandro

On February 14, 2025, Argentinian President Javier Milei published a post on his X profile promoting a cryptocurrency, claiming it would boost IT investments in Argentina. Despite an initial surge in value, the token collapsed to one-tenth of its peak price, leaving everybody in the Casa Rosada in an awkward position.

Following Milei’s post, the cryptocurrency’s value skyrocketed from an initial price of $0,000001 per unit to a peak of $5,20, only to drop again and stabilize at $0,99. A few hours after the first tweet, Milei personally deleted the post, admitting he was not fully aware of the project’s dynamics, despite having endorsed it.

According to some estimates highlighted by Jonathan Goldfarb during an interview with President Javier Milei, broadcast by the Argentinian network TN, 44,000 investors were involved in $LIBRA’s sordid affair, 86% of whom were unable to recover the value of their investments. During the interview, Goldfarb pressed the libertarian leader, who attempted to deflect responsibility and downplay his involvement. Milei argued that investors should have assessed the risk before purchasing the cryptocurrency, comparing crypto trading to gambling. Furthermore, he claimed that, as an economist expressing opinions on his personal social media profile, he was not institutionally responsible for the advice given. Ultimately, the ultra-libertarian defended himself by stressing that his interest in $LIBRA was purely emotional, describing himself as a “tech-optimistic fanatic.” He insisted that his intentions were solely to inform the public, not to endorse digital investment initiatives, thereby absolving himself of any legal responsibility.

The wave of bad press sparked significant interest across Argentina. Strong accusations were made by the opposition which, through the establishment of a special commission, aims to shed light on the President’s involvement in the $LIBRA scandal. The judiciary is also conducting a parallel investigation. Federal judge María Servini has appointed federal prosecutor Eduardo Taiano as the lead investigator. According to internal leaks, Taiano has requested reports from several government agencies, including the Argentinian Central Bank (BCRA) and the National Securities Commission (CNV), as well as private companies such as the American tech giant Google.

In the following days President Milei showed no signs of being shaken. In fact, these internal issues did not prevent him from attending the Conservative Political Action Conference (CPAC) in the U.S., which included an official meeting with the American leader Donald Trump. Trump took the opportunity to applaud Milei and express full support during his speech at the conference. Beyond Trump, Milei was also seen alongside South African tycoon Elon Musk – a well-known ally, as their political alignment is no secret. At the end of the trip, the Head of the Cabinet, Guillermo Francos, hailed to the visit to the visit to the United States as a great success for the administration, downplaying the accusations raised by the Kirchners in Parliament just a few days earlier. He further stated that the opposition’s political attacks were overshadowed by the widespread support and recognition Milei received on the international stage.

In conclusion, the entire executive branch expressed it willingness to cooperate with the judiciary in the ongoing investigations. However, it is evident that the President and his inner circle are treading carefully to avoid any association with the cryptocurrency scandal, using vague and non-explanatory language and downplaying the situation as an opposition-led attempt to destabilize the government. The opposition itself remains deeply divided. The rift between Alex Kicillof and Peronist leader Cristina Kircher has become a pivotal factor, to the extent that Milei’s government appears to view Kicillof’s faction of Peronism as its primary interlocutor within Congress. This approach is certainly not welcomed by the historic leader of the Partido Justicialista (PJ), who has so far refrained from commenting on the internal divisions.

Therefore, the world now awaits the Argentinian judiciary’s verdict to determine whether this is merely a minor setback for the ultraliberal administration or the spark that could trigger the swift collapse of Milei’s presidency.

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