Argentina’s President Milei Indicted Over Alleged Crypto-Related Fraud
Argentina’s congressional committee has released an investigative report accusing President Javier Milei of bearing “political responsibility” in a potentially fraudulent cryptocurrency scheme involving the $LIBRA meme coin. The findings, issued by a panel within the Chamber of Deputies, also implicate Milei’s sister and close advisor, Karina Milei, due to her role in the president’s communications and political strategy.
The report centres on Milei’s public endorsement of $LIBRA earlier this year, which followed his February post on X stating, “The world wants to invest in Argentina. $LIBRA.” This message drew thousands of Argentine investors to the token, marketed as a symbol of optimism for the country’s economic future.
Crypto analysts later identified the $LIBRA project as bearing the hallmarks of a “rug pull”, a tactic where promoters inflate interest in a digital asset before withdrawing liquidity, causing its value to collapse. Investors reportedly suffered hundreds of millions of dollars in losses within hours. Milei has denied knowledge of the coin’s creators or mechanisms, framing his post as a general endorsement of economic innovation.
Indictment Escalates Political and Legal Pressure
The congressional report, now submitted to judicial authorities, comes amid a growing legal probe, with more than 100 criminal complaints filed since mid-February related to $LIBRA. Complaints have been lodged by affected investors and political figures, alleging that the president’s public support misled the public.
Both Javier and Karina Milei declined to participate in the legislative inquiry, prompting criticism from lawmakers who said their absence undermined transparency. The incident underscores broader concerns over public figures endorsing cryptocurrencies, particularly as investor trust in crypto ventures remains fragile across Latin America.
Global Debate Over Celebrity and Political Crypto Endorsements
The $LIBRA case adds to a global discussion about the risks of celebrity and political endorsements in the crypto sector. Similar controversies have emerged in recent years, including projects linked to high-profile personalities such as US rapper Kanye West, where dramatic price swings caused substantial investor losses.
Regulators worldwide continue to warn that tokens backed by celebrities or political figures carry heightened risk, often relying on hype rather than underlying fundamentals, and highlight the potential for significant financial harm when public endorsements go awry.
