On February 14, 2025, Argentine President Javier Milei promoted a cryptocurrency called $LIBRA on X (formerly Twitter), linking it to the “Viva La Libertad Project.” The initiative, pitched as a private effort to fund small businesses and attract investment to Argentina, triggered a dramatic surge in $LIBRA’s value.

The token’s price skyrocketed from cents to $4,978, briefly reaching a market capitalization of $4.6 billion. However, within hours, its value collapsed by over 90%, leaving investors with massive losses.

Blockchain analysts revealed that 82% of $LIBRA’s supply was controlled by a small group of wallets. Insiders reportedly sold $107 million worth of tokens during the price peak, suggesting a “pump-and-dump” scheme. Experts estimate the crash wiped out nearly $4.4 billion in market value, devastating retail investors who bought at inflated prices.

Milei deleted his post hours after the crash and denied involvement in the token’s operations. His office stated that the president had supported the project to encourage investment but distanced himself upon learning more details.

Argentina’s President Milei Faces Crypto Controversy After $LIBRA Crash

An investigation has been launched to examine potential misconduct, including ties to KIP Protocol, the company linked to the project. KIP representatives claimed they were only involved after the token’s launch and denied responsibility for its volatility.

Critics accused Milei of recklessly using his influence to promote a speculative asset. Opposition parties have called for impeachment proceedings, citing ethical concerns.

The $LIBRA controversy highlights the risks inherent in cryptocurrency markets and raises concerns about political endorsements of digital assets. For investors and policymakers, it emphasizes the need for stronger oversight to prevent manipulation and safeguard consumers in this volatile sector.

Argentina’s President Milei Faces Crypto Controversy After $LIBRA Crash