LIBRA Token Scandal: Did Argentina’s President Milei Back a Meme Coin?

According to the now-deleted post, LIBRA was described as a catalyst for local small businesses and startups, aiming to stimulate Argentina’s economy. The message reportedly included Milei’s statement, “The world wants to invest in Argentina.” Some reports claim that the meme coin’s market capitalization surged to $4.5 billion within hours.

The situation took an unexpected turn when President Javier Milei quickly deleted his original post, stating that he had not been fully informed about the project’s details.

I was not aware of the details of the project and after having become aware of it I decided not to continue spreading the word,” he explained, adding harsh criticism of his political opponents, whom he referred to as “filthy rats of the political caste.

According to Lookonchain, an investigation revealed that eight wallets allegedly linked to the project’s team withdrew over $107 million, leading to a sudden 95% drop in the token’s market capitalization.

The sudden crash raised doubts within the crypto community about the legitimacy of the project’s launch. The concentration of a large portion of tokens in a small group of wallets fueled suspicions of a potential rug pull.

Related: Will Milei Succeed Bukele as the Bitcoin Maximalist Leader?

Further transaction analysis showed that some investors faced significant losses—certain wallets lost over $1 million, while others saw losses in the hundreds of thousands, sparking widespread outrage in the crypto space.

According to Reuters, opposition forces in Argentina are already threatening to launch impeachment proceedings against President Milei, citing damage to the country's international reputation.

Shortly after the controversy erupted, the presidential office submitted a request to the Anti-Corruption Bureau, calling for an investigation into potential legal violations related to the launch of LIBRA.

This case serves as another reminder of the risks involved in such ventures. Despite developers' claims of good intentions, investors should remain cautious and conduct thorough research before making financial decisions.