Milei's $LIBRA Endorsement Reportedly Led to $100M Cryptocurrency Crash, Investigation Suggested

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Milei's $LIBRA Endorsement Reportedly Led to $100M Cryptocurrency Crash, Investigation Suggested

Bitget-RWA2025/11/22 11:00

By:Bitget-RWA

- Argentine President Javier Milei faces investigation for promoting $LIBRA, a collapsed crypto linked to $100M+ investor losses. - Congressional report claims his endorsement boosted the token's visibility, enabling a "rug pull" and draining liquidity pools. - The probe also ties Milei to prior crypto projects and corruption allegations involving his sister at the National Disability Agency. - Legal actions freeze assets of $LIBRA organizers, while political challenges persist amid a new Congress dominate

Argentine President Javier Milei is under increasing examination after a congressional committee determined that his endorsement of the failed $LIBRA cryptocurrency amounted to official misconduct, urging a formal probe into his activities. The Chamber of Deputies' investigative panel issued a 200-page document

accusing Milei of leveraging his presidential position to boost the token's profile

, which led to investor losses exceeding $100 million. These conclusions contradict previous statements from Milei and his team, who insisted his role was simply to share information as a "techno-optimist"

with the intention of supporting Argentina's technology industry

The report highlights that Milei’s public backing of $LIBRA in February 2025—through a social media post that has since been deleted—sparked a spike in trading activity before the token’s sudden downfall, which experts described as a "rug pull." Investigators claim the president’s involvement was "crucial" to the scheme,

as his endorsement helped the project secure liquidity

it would not have otherwise obtained. The collapse affected more than 114,000 wallets, with 498 individuals each losing over $100,000

as documented in reports

Milei's $LIBRA Endorsement Reportedly Led to $100M Cryptocurrency Crash, Investigation Suggested image 0

The investigation also uncovered a recurring pattern, connecting $LIBRA to previous crypto ventures such as the KIP Protocol, which Milei also promoted in December 2024.

Blockchain records referenced in the report

indicate that liquidity pools for both tokens were emptied soon after Milei’s endorsement, pointing to a calculated effort to evade regulatory scrutiny. The committee also faulted Milei for holding 16 private meetings with $LIBRA’s founders, including U.S. businessman Hayden Davis and Argentines Mauricio Novelli and Manuel Terrones Godoy,

all arranged by Milei’s sister

, Karina Milei, who is the presidential chief of staff.

Legal and political fallout is escalating.

Federal Judge Marcelo Martínez de Giorgi has frozen the assets

of leading $LIBRA figures, including Davis, while criminal probes into fraud and money laundering are ongoing. The congressional findings have been sent to prosecutors, but it is unclear if lawmakers will take further steps. With a new Congress, largely loyal to Milei, set to assemble in December,

many expect little action

on the committee’s recommendations.

The controversy adds to Milei’s mounting difficulties, as his administration is already under fire for alleged corruption involving the National Disability Agency (ANDIS), where his sister is accused of accepting bribes from pharmaceutical deals

based on witness statements

. Meanwhile, Argentina’s crypto sector remains unstable. Despite the $LIBRA fiasco, the country has experienced a rise in emerging-market bond sales, with Buenos Aires recently securing $600 million from international investors—

marking the first such issuance since 2016

. Experts point out that while the current political unrest may deter immediate investment, Argentina’s broader economic changes could still draw in capital.

As the $LIBRA scandal continues to unfold, the report’s focus on systematic avoidance of regulatory oversight raises larger concerns about cryptocurrency governance in Argentina. The conclusions may shape future legislative discussions on digital assets,

especially as major banks get ready to return to the crypto market

. For now, attention is on whether Milei will face criminal prosecution or political fallout—a question complicated by his increasing power in a changing political environment.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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