Argentine President Javier Milei's "Libragate" Cryptocurrency Controversy

An X tweet by Argentine President Javier Milei resulted in a crypto controversy threatening his political position. It all started when Milei endorsed the token LIBRA on X, describing it as a project focused on boosting economic growth by supporting small businesses and startups.

Argentine President Javier Milei’s X tweet about the LIBRA token has sparked a crypto controversy that threatens to damage his political standing.

What happened: The trouble began when Milei expressed his support for the LIBRA project, describing it as a token designed to support small businesses and startups in boosting economic growth.

Given Milei’s 3.8 million followers and the credibility he brings as the president, the token’s value soared from near zero to $5, briefly reaching a $4-billion market capitalization.

However, the endorsement faced public backlash, leading Milei to delete the post just hours later. This triggered a massive sell-off, causing LIBRA’s value to drop rapidly and wiping out millions in investor funds.

The sudden rise and fall of LIBRA have raised concerns over potential manipulation and the risks of political figures influencing volatile crypto markets.

The Viva La Libertad Project, which is associated with the LIBRA token, includes Milei’s popular catchphrase La Libertad (meaning “long live freedom” in Spanish) in the domain name. The project’s stated purpose was to channel funding for Argentine investors and citizens in a decentralized manner. Its token distribution earmarked 50% tokens for Argentina’s growth, 30% for liquidity and 20% for the treasury.

Who is behind the LIBRA token?

Hayden Davis, a 28-year-old American crypto developer and CEO of Kelsier Ventures, had a significant role in the launch of the controversial memecoin LIBRA. He said he was an adviser to Milei, though the latter’s office denied any such connection. Davis is also said to have a role in the launch of Melania Trump’s memecoin, MELANIA.

However, KIP Protocol denied their involvement in a statement released on Feb. 24 via its X handle. The company stated that it was invited by Mauricio Novelli on Feb. 13, 2025, for support in financing small and midsize enterprises but had nothing to do with the token’s creation.

Dave Portnoy, founder of Barstool Sports, said he was approached by someone connected to the LIBRA memecoin launch to discuss potential promotional opportunities. A crypto firm headed by an anonymous “Meow” was also involved in the launch.

Did you know? The LIBRA incident has drawn comparisons with the launch of the TRUMP coin, which is associated with U.S. President Donald Trump. That venture also involved a memecoin, which experienced a rapid price increase followed by a sharp decline.

Accusations against President Milei concerning LIBRA memecoin scam

Argentine President Javier Milei is facing serious accusations following his endorsement of the cryptocurrency LIBRA.

Critics are labeling the incident a potential rugpull scam, alleging that investors were lured in by Milei’s support for the token and invested in the token before it collapsed, leaving many with worthless coins.

Lawyer Jonatan Baldiviezo, alongside engineer María Eva Koutsovitis and economist Claudio Lozano, a former head of Argentina’s Central Bank, filed a lawsuit against President Milei, accusing him of fraud.

Baldiviezo claimed his actions were instrumental in an “illicit association” with the promoters of the coin. The non-governmental organization Observatorio del Derecho a la Ciudad also filed a case, accusing Milei of playing a key role in a scheme that allegedly caused over 40,000 investors to lose more than $4 billion.

Even Davis, one of LIBRA’s developers, claimed that Milei’s abrupt withdrawal of support contributed to the token’s crash, implying betrayal by the president’s team.

Latin American leaders also expressed concern, with Mexico’s president, Claudia Sheinbaum, stating that “it is extremely serious if confirmed, particularly regarding a president’s authority to promote something private.”

Reportedly, he is under investigation in Spain over his involvement in the LIBRA cryptocurrency scandal. Accusations include fraudulent operations, market manipulation and insider trading after LIBRA’s value crashed, resulting in significant losses for investors.

How did Milei put up his defense?

In response to the accusations, Milei and his office have firmly denied any wrongdoing. A statement from the president’s office emphasized that Milei was not involved in LIBRA’s development and that his social media posts merely reflected his broader support for entrepreneurial ventures.

The statement noted that Milei regularly promotes business projects as part of his free-market philosophy. His endorsement of the KIP Protocol, the developers behind LIBRA, was a part of the broader policy.

An anonymous government official defended Milei in communication with Reuters, arguing that if anyone had been deceived in this situation, it was the president himself. The official emphasized that Milei often supports private initiatives and will continue to do so.

In a social media post, Milei dismissed the controversy as a politically motivated attack by his opponents.

Despite these defenses, public skepticism about Milei remains high. Critics argue that Mile