An Argentine legislative committee has released a detailed probe concluding that President Javier Milei bears “political responsibility” for what it describes as a potential fraudulent scheme tied to a cryptocurrency he publicly endorsed earlier this year.
The report, issued by the Chamber of Deputies and led by opposition figures, points to Milei’s promotion of the $LIBRA meme coin as compatible with “alleged fraud,” implicating both the president and his influential sister, Karina Milei, who serves as a key advisor.
The controversy stems from a February social media post by Milei, where he enthusiastically stated, “The world wants to invest in Argentina. $LIBRA,” drawing widespread attention to the token.
However, experts later labeled the project a classic “rug pull”—a deceptive tactic where creators hype a crypto asset, draw in funds, and then abruptly withdraw liquidity, causing its value to plummet.
Investors reportedly suffered losses amounting to hundreds of millions of dollars as $LIBRA’s value cratered within a single day. Milei has since distanced himself, insisting he was unaware of the project’s specifics.
The commission’s findings have been forwarded to judicial authorities overseeing an ongoing investigation, which has already consolidated dozens of legal complaints against Milei and associated parties.
Over 100 criminal filings alleging fraud were lodged by mid-February, primarily from politicians and affected investors, though the exact path forward in Congress remains uncertain.
With new lawmakers—many aligned with Milei’s coalition—set to assume seats on December 10 following October’s midterms, the body may be less inclined to escalate the matter.
Efforts to question Milei and his sister during the inquiry proved fruitless, as both declined to appear despite summonses.
The scandal has echoed beyond Argentina’s borders, with parallels drawn to similar high-profile crypto schemes, including one involving a token linked to Melania Trump, highlighting broader concerns about celebrity-endorsed digital assets.
Interestingly, $LIBRA experienced a 30% price surge following the report’s release, amid allegations of coordinated insider trading.
This episode adds to mounting scrutiny of Milei’s administration, which has faced criticism over economic policies and international ties, including recent U.S. support amid Argentina’s financial challenges.
As the judicial probe advances, the case could test the boundaries of presidential accountability in the volatile world of cryptocurrency.
