Argentine President Javier Milei defends crypto tweet amid backlash, losses

Javier Milei, facing legal complaints and impeachment calls, compares investor loss in crypto to gambling

Argentine President Javier Milei is under fire after endorsing a cryptocurrency that experienced a dramatic price surge and subsequent collapse within hours, leaving investors with significant losses. The controversy has sparked calls for his impeachment and multiple legal complaints, including allegations of financial fraud.

 

In a recent television interview with TN, however, Milei defended his actions, stating that investing in cryptocurrency carries inherent risks and likened those who participated to gamblers at a casino. “The reality is, if you go to a casino and lose money, what claim do you have if you knew the risks?” he remarked. He denied personal involvement in the project and insisted that he intended to spread awareness rather than directly promote the token.

 

 

Milei promotes cryptocurrency on X

Far-right President Milei promoted the digital token $LIBRA on his social media account last week, describing it as an initiative aimed at fostering economic growth by supporting small businesses and entrepreneurs. His endorsement led to a sudden spike in the token's value, climbing from near zero to $5. However, mere hours later, following public outcry and scrutiny, Milei deleted his post. The value of $LIBRA then plummeted, wiping out millions in investor funds.

 

Lawmakers accuse Milei of fraud

Legal challenges have swiftly followed. The Popular Unity political party, among others, has lodged a formal complaint, alleging that Milei’s actions contributed to a fraudulent scheme commonly referred to as a 'rug pull'—a deceptive practice where a cryptocurrency is hyped to attract investors before its creators abandon the project, leaving investors with worthless assets.

 

A judge has been assigned to investigate these allegations.

 

$LIBRA call out Milei for market crash

The company behind $LIBRA, Kelsier, has refuted claims of wrongdoing, insisting that the project was legitimate. However, Hayden Mark Davis, a representative of KIP Protocol, the firm linked to the cryptocurrency, accused Milei and his team of withdrawing support at a critical moment, triggering the market crash. 

 

Argentine Prez Javier Milei accused of fraud over $LIBRA crypto promotion

Informing, not promoting: Milei on $LIBRA

In response to the backlash, the president’s office issued a statement distancing Milei from the venture. The statement claimed that he was unaware of the project’s specifics and merely intended to highlight a financial opportunity for Argentine entrepreneurs. It further stated that Milei routinely shares information about emerging business ventures and decided to delete the post to prevent speculation.

 

“I am spreading the word that this is to fund Argentines who do projects and who do not have access to financing,” Milei also told TN.

 

Despite these clarifications, criticism continues to mount. Legal experts argue that Milei’s influence played a direct role in attracting investors, raising ethical concerns about public officials endorsing speculative financial products. Political opponents assert that the incident is indicative of recklessness in governance and have called for greater accountability.