Argentina’s financial landscape has been shaken by a growing scandal involving the sudden collapse of the $LIBRA cryptocurrency. This all began in February 2025 when the Argentine president, Javier Milei, publicly supported $LIBRA, a digital currency created by entrepreneur Hayden Mark Davis. Milei’s endorsement aimed to help small businesses in Argentina, a country already struggling with high inflation and economic instability.
After the president’s endorsement, $LIBRA quickly gained attention, and its value soared, briefly reaching a market cap of $4.5 billion. Many saw it as a potential lifeline for small businesses in the country, eager to invest in something that might improve Argentina’s dire financial situation. But the excitement was short-lived. Within hours, $LIBRA’s value collapsed by almost 89%, causing massive losses for investors who had hoped for profits.
This rapid rise and fall raised questions about the legitimacy of $LIBRA and its creators. People began to suspect foul play, wondering whether the cryptocurrency had been part of a well-planned scheme to deceive the public.
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The $LIBRA Scam Allegations: A Suspicious Collapse
As the dust settled from the $LIBRA crash, investigations into the cryptocurrency’s collapse began to uncover disturbing details. It was discovered that several wallets linked to $LIBRA had made substantial withdrawals just before the value of the coin dropped sharply. In total, over $100 million had been pulled out, leading to accusations of a “rug pull.” A rug pull is when the developers behind a cryptocurrency scam take money from investors and abandon the project, leaving everyone else with worthless coins.
This discovery cast a shadow over the cryptocurrency, and suspicions began to rise about its true nature. Was $LIBRA just a scam designed to enrich a few people at the expense of the public? The fact that President Milei had endorsed it made these questions even more pressing.
While Milei initially defended his support of $LIBRA, insisting it was a legitimate initiative to support Argentina’s struggling economy, his tone began to change as the situation escalated. The president removed his social media posts promoting the cryptocurrency and denied any personal involvement in the collapse. Despite his efforts to distance himself from the controversy, the damage had already been done. Calls for an investigation and even impeachment began to grow louder.
Political Fallout: Milei Under Pressure
The fallout from the $LIBRA scandal has sparked a fierce political battle in Argentina. Opposition leaders, eager to undermine Milei’s credibility, have accused him of being involved in fraudulent activities and have called for his impeachment. They argue that Milei either knew about the risks of $LIBRA or was too careless in promoting it without properly assessing its legitimacy.
Criticism has also come from the public, particularly from those who lost money in the collapse. Many ordinary citizens who had trusted Milei’s endorsement of $LIBRA now feel betrayed. They believe the president either failed to protect them or actively misled them into investing in something that was not what it seemed.
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The scandal has had a devastating effect on public trust in the government, especially as Argentina continues to face economic hardship. The damage to Milei’s reputation is significant, as many people are now questioning his ability to manage the economy and make sound financial decisions for the country.
An Investigation to Uncover the Truth Behind $LIBRA
As the investigation into the $LIBRA collapse continues, legal complaints have been filed, and Judge Maria Servini is now leading the inquiry. This investigation aims to determine whether any government officials, including President Milei, were involved in the cryptocurrency’s rise and fall.
Opponents of Milei, particularly former political figures, have been vocal in accusing him of being complicit in the crash. One prominent critic claimed that while thousands of ordinary people lost millions of dollars, others were able to make huge profits due to having privileged information about the collapse. Milei has denied these allegations, maintaining that he did not promote a scam.
The unfolding investigation is set to determine whether the collapse of $LIBRA was the result of fraud, mismanagement, or sheer negligence. Until then, the controversy will continue to dominate Argentina’s political scene, with many waiting to see what consequences Milei will face for his role in this rapidly growing scandal.
