In February 2025, Argentina’s President Javier Milei promoted a cryptocurrency called $LIBRA on his social media platforms, describing it as a private initiative aimed at stimulating economic growth by supporting small businesses. Within minutes, the coin’s value surged from fractions of a cent to over $5, attracting thousands of investors. However, the euphoria was short-lived. The coin’s value plummeted within hours, leading to allegations of a “rug pull” scam and estimated losses of $250 million for investors. The incident, dubbed “Cryptogate,” has ignited political controversy and calls for President Milei’s impeachment.
On February 14, 2025, the Delaware-based company Kelsier Ventures launched the $LIBRA token as part of a project called “Viva La Libertad.” Just three minutes after its creation, President Milei promoted the coin on his official social media accounts, providing a contract address for purchasing the token. The endorsement led to a rapid increase in the coin’s value, reaching a peak of $5.20 within 40 minutes. However, the price soon collapsed, dropping to $0.99 within hours. Investigations revealed that the coin’s founders held 70% of the total supply and sold their holdings during the price surge, profiting approximately $87 million at the expense of around 74,000 investors.
The scandal has had significant political ramifications. Opposition parties, including the Union for the Homeland alliance, have called for President Milei’s impeachment, accusing him of violating the duties of a public official. Within 48 hours of Milei’s initial promotion of $LIBRA, 112 criminal complaints alleging fraud were filed in the Supreme Court of Argentina. In response, President Milei ordered the Anti-Corruption Bureau to investigate whether any member of the national government, including himself, had engaged in misconduct. A new body, the “Unit for Investigation Tasks,” was also established within the Presidency to examine the entire $LIBRA project.
The fallout from the $LIBRA scandal has extended beyond Argentina’s borders. International law firms, such as Burwick Law, have proposed class-action lawsuits on behalf of foreign investors who suffered significant losses. These firms aim to present cases in international courts, arguing that President Milei’s promotion of the cryptocurrency constituted a deceptive practice leading to detrimental investments. Additionally, an Argentine law firm operating in the United States and victims of the cryptocurrency scam have reported Milei and other responsible parties to the U.S. Department of Justice and the FBI.
This is not the first time President Milei has faced criticism for promoting cryptocurrency projects. In 2021, as a national deputy, he recommended a crypto platform called CoinX, which was later banned by the National Securities Commission for operating without authorization and compared to a Ponzi scheme. In 2022, he promoted the Vulcano Game NFT gaming project, whose token value plummeted shortly after his endorsement.
The $LIBRA cryptocurrency scandal has not only resulted in substantial financial losses for investors but has also triggered a political crisis in Argentina. As investigations continue and legal actions unfold, the incident serves as a cautionary tale about the risks associated with unregulated digital assets and the responsibilities of public officials in endorsing financial products.