The cryptocurrency world is reeling following a scandal in Argentina involving a newly released digital coin called $Libra, which reportedly defrauded investors of $250 million. The incident gained traction when Argentine President Javier Milei tweeted about the investment opportunity shortly after the coin’s creation on Valentine’s Day. Immediate interest from the public caused $Libra’s value to soar, but shortly thereafter, significant stakeholders sold off their holdings, leading to a swift and devastating crash for the average investor.
Described by seasoned crypto experts as a “rug-pull” scheme, where prominent figures promote a digital asset only to profit at the expense of less experienced investors, the fallout has been severe. As news broke, there were widespread public outcries directed at President Milei, who critics allege played a pivotal role in misleading his constituents. In response to the backlash, over a dozen criminal complaints were filed by affected citizens, prompting a federal prosecutor to launch a formal investigation into the matter, focusing on President Milei himself as a key figure.
Following the incident, Milei attended the Conservative Political Action Conference (CPAC) in Washington, D.C., where he made a defiant speech prior to President Trump, who also faced similar scrutiny for promoting a new cryptocurrency earlier this year. The 2025 $Trump coin significantly benefitted insiders, resulting in losses of approximately $2 billion for over 800,000 investors, paralleling Argentina’s ongoing crisis with $Libra. As the situation unfolds, it will remain critical to monitor how both Milei’s administration responds and what the implications are for cryptocurrency regulations in the country.
