Argentina’s congressional panel has accused President Javier Milei of holding “political responsibility” in a controversial cryptocurrency case linked to the $LIBRA meme coin. The investigation, carried out by the Chamber of Deputies, also points to Milei’s sister and adviser, Karina Milei, citing her role in his political and communication strategy.
The report focuses on Milei’s public promotion of $LIBRA in February, when he tweeted on X: “The world wants to invest in Argentina. $LIBRA.” This endorsement attracted thousands of Argentine investors to the token, presented as a symbol of economic optimism.
Crypto experts later flagged $LIBRA as a likely “rug pull”, a scheme in which promoters artificially inflate interest in a token before withdrawing liquidity, causing its value to crash. Investors reportedly incurred hundreds of millions of dollars in losses within hours. Milei has maintained that he was unaware of the coin’s creators or mechanics and described his post as general support for innovation in Argentina.
Legal and Political Fallout Intensifies
The congressional report, now referred to judicial authorities, intensifies the legal scrutiny surrounding $LIBRA, with over 100 criminal complaints filed since February. These complaints come from affected investors and political figures alleging that Milei’s endorsement misled the public.
Both Javier and Karina Milei declined to appear for the legislative inquiry, prompting criticism from lawmakers who said their absence limited transparency. The case highlights growing concerns about political figures endorsing cryptocurrencies, especially amid fragile investor confidence in Latin America.
Rising Global Debate on High-Profile Crypto Endorsements
The $LIBRA incident adds to global discussions over the risks of celebrity and political backing in the crypto market. Similar controversies have involved high-profile figures, including US rapper Kanye West, where dramatic token price swings caused significant investor losses.
Regulators worldwide continue to warn that cryptocurrency projects supported by celebrities or political leaders carry high risks, often driven by hype rather than fundamentals, exposing investors to potential financial harm.
