The LIBRA cryptocurrency has drawn attention in Argentina, becoming central to significant developments in the digital asset sector. In recent years, the country has experienced both support for and scandals related to cryptocurrencies. In 2025, Argentina is experiencing a wave of initiatives and controversies, highlighting both the opportunities and risks of the new financial system.
On Sunday, lawyers in Argentina filed criminal complaints against President Javier Milei for promoting LIBRA on social media.
The Scandal Erupted In Full Force
The LIBRA cryptocurrency has become embroiled in a major scandal:
– The token’s market capitalization reached a peak value of $4.56 billion.
– However, in just 11 hours, the value plummeted by over 94%, falling to $257 million.
– Before the crash, eight wallets linked to project insiders withdrew over $107 million.
This sharp decline led to accusations of fraud and “rug pull” (a scheme where developers abandon a project after its peak), which resulted in criticism of the President of Argentina for his previous support of this project. In response to public dissatisfaction and legal charges against the president, an investigation by the country’s anti-corruption office began.
On Friday, Milei posted on X about $LIBRA—a coin that, according to him, was aimed at “stimulating economic growth by financing small businesses and startups.”
A few hours later, he deleted the post, and the currency’s value dropped, resulting in investor losses amounting to millions of dollars, according to the financial website Dexscreener.
The coin, developed by KIP Protocol and Hayden Davis, could be obtained by following a link that directed users to vivalalibertadproject.com, a site named after the well-known phrase Milei uses to conclude his speeches and social media posts.
In a statement published on Saturday, the president’s administration clarified that Milei was not involved in any stage of the cryptocurrency’s development and had decided to delete the post to avoid speculation and limit the further spread of information, considering the public reaction to the project’s launch.
As a result, President Milei faced fraud accusations related to his involvement in promoting the LIBRA cryptocurrency. Lawyers filed a lawsuit in criminal court, alleging that the president’s actions were part of a fraudulent scheme that led to financial losses for investors. Argentina’s Anti-Corruption Bureau launched an investigation into Milei and other government officials to determine whether any wrongdoing had occurred. A special investigative group, composed of experts in cryptocurrency, finance, and anti-money laundering, was formed to analyze the LIBRA launch and the individuals involved.
Opposition lawmakers and political figures demanded Milei’s impeachment, calling his involvement with LIBRA a ‘national disgrace’ with global ramifications. The scandal has triggered a political crisis in Argentina, with critics asserting that the president’s reckless endorsement of a speculative asset resulted in financial losses for investors.
President Milei faced intense criticism from political opponents, who accused him of becoming a “bait” for a “digital scam.” The collapse of the LIBRA cryptocurrency has undermined investor confidence and sparked widespread panic, leading to a massive sell-off. This case has highlighted the dangers of political figures endorsing meme coins and speculative assets, which can damage trust in the cryptocurrency market.
Support for Cryptocurrencies In Argentina
Argentinian President Javier Milei actively advocates for the integration of cryptocurrencies into the national economy. He has announced plans to legalize Bitcoin and other digital currencies as legal means of payment starting in 2025. This initiative aims to stabilize the country’s financial system and attract foreign investments. Milei has also proposed sweeping tax reforms, slashing national taxes by 90% to spur economic growth and attract local investment.