Argentine President Javier Milei is facing intense backlash and dozens of lawsuits after directing his social media followers to a website promoting a cryptocurrency initiative that quickly crashed after rising in value.
The Libra token, a memecoin launched on the Solana blockchain, saw its market value rapidly rise past $4 billion before collapsing hours later, Bloomberg detailed.
Among those affected was Barstool Sports founder Dave Portnoy, who called Libra "the biggest rug pull of all time," a term used in cryptocurrency circles to describe sudden investor losses due to a scam. Hayden Davis, the entrepreneur behind the token, acknowledged holding profits despite the decline. He later said the project was an experiment and he is waiting instructions from the government to return some $100 million to investors who faced losses.
Milei's endorsement of Libra drew comparisons to a similar token launched by former U.S. President Donald Trump right before taking office. The fallout from the Libra crash has prompted scrutiny of Milei's involvement, with several lawsuits being filed since. Others involved in the project and people close to the president have been accused as well.
Davis, CEO of Kelsier Ventures, initially claimed in a video post that he was an adviser to Milei and had been working with the Argentine government on blockchain initiatives. However, Milei's office later issued a statement denying any official connection between Davis and the administration. Davis also stated that Milei actively promoted the token before reversing his stance.
Milei later clarified that he had met Davis at Argentina's presidential palace as part of discussions on digital infrastructure. The president stated that he was unaware of the specifics of Libra and had merely supported what he believed to be a private-sector initiative. He has since deleted the publication on X promoting Libra. KIP Protocol, the company that originally proposed the token, released a statement denying involvement in its launch and distancing itself from Davis.
The government issued a statement on Saturday saying Milei was only promoting a business, as he routinely does, but that he directed the opening of an investigation into whether anyone in the government broke the law.
The political consequences of the episode remain uncertain. Despite legal action and an impeachment trial threatened by the opposition, such efforts are unlikely to succeed without a two-thirds majority in Congress. Milei's political allies have expressed disappointment but have not withdrawn their support.
© 2025 Latin Times. All rights reserved. Do not reproduce without permission.
