BUENOS AIRES — Argentina President Javier Milei was facing criticism Saturday after promoting a cryptocurrency whose value soared, then quickly tanked, sparking accusations of fraud and calls for an investigation.
UNDER FIRE Argentina’s President Javier Milei leaves the Holocaust Museum after attending an event to commemorate International Holocaust Remembrance Day in Buenos Aires on Jan. 27, 2025. AFP Photo
According to news outlets, the libertarian Milei had posted a message on social media platform X Friday evening, praising a “private project” aimed at “stimulating the growth of the Argentine economy by financing small businesses and Argentine entrepreneurs.”
“The world wants to invest in Argentina. $LIBRA,” the post reportedly said, naming the cryptocurrency along with a website for the project.
Hours later, Milei deleted the message, explaining: “I did not know the details of the project, and after learning about it, I decided not to continue spreading it.”
He added he had “obviously no connection” with the “alleged private company.”
But industry observers called the operation a “rug pull” — a scam where developers unveil a crypto token, attract investors, then quickly cash out.
“Within minutes of the launch, multiple large holders began liquidating MILLIONS of USD worth of $LIBRA,” The Kobeissi Letter, which provides analysis on global capital markets, said in a thread on X.
“This included gains of +$4 million or more as $LIBRA rose to $4.6 billion in market cap. After the top was set at 5:40 PM ET, the coin fell in a literal straight line.”
Javier Smaldone, a computer scientist and digital influencer known for his denunciation of pyramid schemes, called the short-lived operation a “global scam” in a post on X.
“So far, it has been discovered that the profit made is around $107 million,” he told AFP. “Maybe more.”
On Saturday, former president and opposition figure Cristina Kirchner called Milei a “crypto-scammer.”
Maximiliano Ferraro of the center-right Civic Coalition said Parliament must create a “special inquiry commission” to “clarify the facts and determine responsibility.”
It appeared Milei was preparing to defend himself.
Francisco Onato, identified in local media as Milei’s personal lawyer, posted on X that the president merely highlighted a company to boost Argentina’s economy.
His behavior “does not constitute any crime due to the lack of intention,” he argued.