Argentine President Javier Milei has denied any involvement in a cryptocurrency scandal that saw investors lose billions after the digital asset $LIBRA collapsed.
Speaking to broadcaster TN on Monday, Milei insisted he merely “spread” information about the token, not promote it.
He said:
It is a problem between private parties because the State does not play a role here.
Milei added that he had acted “in good faith.”
$LIBRA crypto crash: Federal investigation into potential fraud
Argentina’s federal prosecutor’s office has launched an investigation into whether Milei engaged in fraud, criminal association, or breached his duties when he publicly endorsed $LIBRA on social media.
The digital currency initially surged in value before plummeting, prompting Milei to delete his post hours later, calling it a mistake.
💥BREAKING:
Argentinian President Javier Milei retweets “How To Buy $LIBRA” Tutorial, days after deleting his post endorsing the project.
THIS IS CRAZY 😱
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Rights group Observatory for the Right to the City, along with multiple complainants, alleges Milei was part of a “criminal organization” that orchestrated a fraud affecting over 40,000 investors, resulting in losses exceeding $4 billion.
Crypto analysts suspect the $LIBRA collapse was a “rug pull”—a scam where developers hype a token, attract investors, and then cash out quickly.
The Kobeissi Letter, a global capital markets analysis publication, reported that within minutes of its launch, large holders liquidated millions of dollars worth of $LIBRA, with some cashing out over $4 million.
Economists, crypto experts, and opposition figures have heavily criticized Milei, branding the asset a potential Ponzi scheme.
Former president Cristina Kirchner labeled him a “crypto-scammer,” while opposition lawmakers are pushing for impeachment proceedings.
$LIBRA crypto crash sends shockwaves through Argentina’s financial markets
In response to the backlash, Argentina’s presidency announced Saturday that the Anti-Corruption Office would investigate whether improper conduct occurred.
A task force has been formed to conduct an urgent probe into $LIBRA’s launch and the individuals or entities involved.
Authorities will also scrutinize Julian Peh, CEO of companies linked to $LIBRA, and Chamber of Deputies President Martin Menem, who had reshared Milei’s initial endorsement.
The controversy has sent shockwaves through Argentina’s financial markets, with the Buenos Aires Stock Exchange closing 5.58% lower on Monday. Some stocks suffered losses of up to 8%.
Despite the scandal, Milei remains focused on his political agenda.
On Monday, he hosted Republican US Senator Steve Daines in Buenos Aires and is set to visit the United States later this week.
However, political analysts warn that the controversy could dent his credibility, even as his anti-inflation measures continue to win public approval.
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