Crypto Chaos and Presidential Crisis: Milei Faces Legal Firestorm Over $Libra Coin Promotion
TECHNOLOGY
Trending
By Insider Lens, Apr 25, 2025 - Toronto
A social media post from Argentine President Javier Milei has set off a political and legal earthquake in the nation, with lawyers, lawmakers, and investors accusing the controversial leader of market manipulation and fraud tied to a cryptocurrency promotion gone disastrously wrong. The explosive allegations stem from a post Milei made on X (formerly Twitter) last Friday, in which he endorsed a digital asset called $LIBRA, claiming it would 'empower small businesses and spark entrepreneurial growth.' Within hours, the coin surged in value, only to collapse after Milei deleted the tweet without explanation.
The $LIBRA Collapse: Millions Lost in Hours
What started as a typical political post morphed into what critics are calling a 'pump-and-dump' scheme: • Investors rushed to buy $LIBRA after Milei's endorsement • The coin's value crashed, wiping out most investments • The tweet included a direct link to buy the token • Investors found the coin's slogan lifted from Milei's campaign speeches Opposition lawmakers were swift and unforgiving: 'This is a presidential rug pull,' declared Esteban Paulón, a member of the opposition Socialist Party, who is now leading an impeachment effort.
Legal Action and Government Response
Key developments in the case: • Buenos Aires-based attorney Jonatan Baldiviezo filed a criminal complaint, accusing the president of fraud • The Presidential Office issued a statement distancing Milei from the coin's developers • Critics are calling for Argentina's Anti-Corruption Office to investigate potential financial ties 'The crime of fraud was committed,' Baldiviezo told the Associated Press. 'And the president's involvement was essential to it.'
A Crypto 'Rug Pull' at the Top?
Social media reactions highlight the scandal: • Many users labeled the incident a classic 'rug pull' scam • Questions raised about why a head of state would endorse an unregulated cryptocurrency • Former President Cristina Fernández de Kirchner called Milei a 'crypto scammer' in a viral post 'This is not just irresponsible—it's criminal,' she wrote in a post viewed over 6 million times.
The Fallout and What's Next
The political and economic consequences: • Argentina's main opposition coalition has branded the event an 'unprecedented scandal' • Formal push for impeachment proceedings announced • Economic analysts warn of destabilized investor confidence • Legal experts say Milei could face charges under financial manipulation laws This case would be politically explosive and unprecedented in Latin America if prosecutors can prove Milei knowingly promoted a fraudulent asset.
What Investors Should Learn
As the political and legal drama unfolds, experts are urging crypto investors everywhere to stay alert: • Do Your Research: Celebrity or political endorsements are not substitutes for financial diligence • Watch for Hype Without Substance: Coins promoted via social media with little transparency often spell danger • Trust but Verify: Always verify token legitimacy, team credentials, and on-chain activity The Insider Lens team is actively monitoring developments. Anyone with evidence, testimonies, or whistleblower insight is urged to contact: _info@insiderlens.org_ or _contact@insiderlens.org_. Stay with Insider Lens for exclusive updates as this story continues to unfold on the global stage.
A Cautionary Tale for Investors
This incident serves as a stark reminder of the risks associated with cryptocurrency investments, particularly in a volatile market like Argentina's. Investors are urged to exercise caution and conduct thorough research before engaging with any digital asset, especially those endorsed by public figures.
SHARE TO
©2025 Copyright by Insider Lens. All rights reserved.
