The Argentine justice system has commenced an investigation against President Javier Milei and several businessmen over the $LIBRA cryptocurrency scandal. This development follows the cryptocurrency's extensive promotion by Milei, whose endorsement attracted significant public interest before it collapsed, leading to millions lost by investors.
According to federal prosecutor Eduardo Taiano, the investigation revolves around potential crimes related to abuse of authority, financial fraud, influence peddling, and bribery. Taiano has initiated the first measures of evidence gathering, directing requests for information from the Central Bank of Argentina and digital companies like Google.
The $LIBRA scandal first erupted on February 14, 2025, when Milei introduced the cryptocurrency to his social media followers. He described it as "a private project aimed at stimulating the growth of the Argentine economy by funding small businesses and local ventures." Following this announcement, the cryptocurrency's value skyrocketed, prompting significant buy-ins from investors desperate for perceived secure profits.
Unfortunately, the euphoria was short-lived. Just hours later, major wallet holders began selling off their investments, leading to a catastrophic plummet in the value of $LIBRA and leaving approximately 44,000 investors facing total losses. Post-collapse, Milei deleted his promotional post, later issuing a statement asserting he had acted "in good faith" and was unaware of the project's underlying details. "If you go to the casino and lose money, what’s the complaint? It’s a private matter; the state doesn’t play any role here," he argued.
Despite his claims of innocence, the fallout has been severe. Prosecutor Taiano aims to investigate the circumstances surrounding the cryptocurrency's creation and launch, focusing on Milei’s role along with five businessmen: Hayden Mark Davies, Mauritius Novelli, Sergio Morales, Julian Peh, and Manuel Terrones Godoy.
Taiano has been efficient, reportedly mobilizing specialized cybercrime units to trace the digital footprints associated with the project. The inquiry's complexity has escalated, as millions were lost to what many victims have described as one of the biggest financial frauds linked to the cryptocurrency sphere.
Milei, who once held the staunch support of approximately 50% of the Argentine population, now faces political turbulence. Critics have dubbed this scandal "Mileigate" and called for impeachment proceedings against him. Yet, amid the uncertainty, he continues to maintain his backing, facing off against political opponents who have intensified their efforts to verify his culpability.
He recently traveled to the United States, where he engaged with leaders from the International Monetary Fund and the World Bank. While attending the Conservative Political Action Conference (CPAC), he seemed to rally support from like-minded individuals, displaying strong anti-state sentiments which resonate with some segments of his populace.
The fallout from $LIBRA has exposed more than just financial mismanagement; it has simultaneously spotlighted Milei's erratic governance style. Accusations of indulgence and impulsivity characterize his leadership approach, leading experts to question his mental stability to handle such significant responsibilities.
The criticism extends beyond political factions as members of Milei's inner circle begin to distance themselves from the controversy. Some advisors are reportedly alarmed by the ramifications of his impulsive announcements, including the ill-fated $LIBRA endorsement. This scandal has not only threatened Milei's reputation as Argentina’s financial genius but could also jeopardize the future of his administration.
Observers note the extensive losses exceeding $4 billion to the defrauded investors have triggered outrage. Political opponents are clamoring for accountability, and public sentiment appears increasingly unsympathetic to Milei's dismissals of responsibility. More than 100 formal complaints have been lodged against him, heightening calls for thorough judicial scrutiny of his conduct.
While legislators may struggle to assemble sufficient support for impeachment, calls for Milei to resign are growing louder. Many citizens question whether he possesses the moral fortitude to lead the nation amid such allegations and losses under his watch. Calls for early elections have emerged, pointing to sentiment among the electorate for significant change.
The $LIBRA scandal highlights the burgeoning tension around trust and accountability as Argentina seeks stability amid financial chaos. Amid rising fears of corruption and fraud, many analysts assert Argentina must enact genuine reforms capable of restoring public faith.
Foreign relations, particularly with allies, hang delicately as international observers seek resolution to improve Argentina’s economic conditions. For now, the focus remains firmly on Javier Milei—whether he can recover from this scandal, regain trust, and navigate the turbulent waters of governance.