Judge Assigned to Probe Milei’s Crypto Promotion
An Argentine federal judge has been assigned to investigate President Javier Milei’s involvement in the promotion of a cryptocurrency that rapidly collapsed. The probe, led by veteran Federal Judge Maria Servini, follows over 100 complaints filed in Argentina and even some in U.S. courts. The controversy began when Milei endorsed the little-known digital token $LIBRA in a post on X (formerly Twitter) last Friday, triggering a short-lived price surge. He later deleted the post and distanced himself from the cryptocurrency, which soon plummeted in value.
The incident has cast a shadow over Javier Milei’s administration, which has been pushing bold economic reforms and austerity measures to combat inflation. Critics argue that the case could be a classic “rug pull”—a scheme where insiders artificially inflate a cryptocurrency’s value before cashing out, leaving investors with worthless tokens. Opposition leaders have gone so far as to suggest that Milei could face an impeachment trial over the incident. Meanwhile, the country’s benchmark S&P Merval stock index tumbled by 5.6% as concerns mounted over the potential fallout.
Legal and Political Fallout Deepens
The scandal intensified as the Observatorio del Derecho a la Ciudad, a local NGO, filed a lawsuit accusing Javier Milei and other officials of fraud, illicit association, and breaching public duty. The organization alleged that more than 40,000 people were affected, suffering combined losses exceeding $4 billion. In contrast, a government insider claimed that Milei was the true victim, arguing that he frequently promotes private projects without direct involvement in their operations.
The cryptocurrency in question was launched on the Meteora exchange, the same platform responsible for the controversial $Trump meme coin in January. Meteora co-founder Ben Chow has denied any connection to the $LIBRA token’s launch, asserting that his firm merely provided technical support. As Milei’s administration faces growing scrutiny, analysts believe an impeachment is unlikely due to insufficient opposition votes. However, the ongoing probe could weaken his political standing as Argentina prepares for midterm elections later this year.
Public and Market Reactions
Public sentiment has been deeply divided. While many investors took to social media to express their outrage over losing their savings, Javier Milei’s supporters defended him against what they claim are politically motivated attacks. The president himself responded aggressively, accusing his adversaries of attempting to exploit the situation for their own gain. In a fiery post on X, he vowed to push back against his critics, further escalating tensions.
As Argentina navigates the political and economic uncertainty stemming from the scandal, questions remain about the extent of Javier Milei’s role in the promotion of $LIBRA and whether the controversy will hinder his government’s reform agenda. With midterm elections on the horizon, the outcome of the investigation could have significant implications for the nation’s political landscape and investor confidence.
