Argentinian President Javier Milei has found himself at the center of a major political crisis after promoting a cryptocurrency called $LIBRA on his social media account. On February 14, 2025, following Milei’s promotion, the value of $LIBRA surged rapidly. However, shortly after, the president deleted his post, leading to a sharp decline in the cryptocurrency’s value. This sudden drop resulted in significant losses for over 40,000 investors.

Political and Legal Repercussions

In response to the controversy, opposition parties accused Milei of fraud and abuse of power, calling for impeachment proceedings. President Milei, however, denied any wrongdoing, stating that he had no role in the development of the cryptocurrency and had merely promoted the project. He further emphasized that investors were fully aware of the risks involved in such speculative investments.

Government spokesperson Manuel Adorni dismissed allegations of bribery against Milei as “insulting”, asserting that there was no unethical conduct involved. Despite this, a federal judge launched an investigation into whether Milei’s promotion constituted a “rug pull” fraud scheme.

Impact on Argentina’s Economy

The scandal has also had a negative impact on Argentina’s financial markets. The Buenos Aires Stock Exchange index dropped by 5.6%, while the country’s currency, the peso, suffered depreciation. Economists warn that this crisis could erode investor confidence in the government and jeopardize Argentina’s ongoing economic reform program.

President Javier Milei’s promotion of $LIBRA has triggered a major political and economic crisis in Argentina. As legal and political consequences unfold, the situation remains highly volatile.

Please make your trading decisions with this information in mind!