Argentina’s libertarian President Javier Milei faces potential impeachment after his cryptocurrency endorsement allegedly cost citizens millions. Could this crypto scandal bring down the Trump ally who was supposed to be Argentina’s economic savior?
At a Glance
- President Javier Milei’s endorsement of $Libra cryptocurrency triggered a price surge before a devastating crash
- Investors lost an estimated $250 million in what appears to be a classic “rug-pull” crypto scam
- An American consultant claims to have made $100 million from the scheme with insider connections
- Evidence suggests Milei’s inner circle, including his sister and Chief of Staff, were involved
- Angry Argentinians are demanding impeachment and federal investigation into potential fraud
Presidential Endorsement Leads to Crypto Disaster
Argentina’s President Javier Milei, a self-proclaimed libertarian who rose to power promising economic revival, now faces mounting calls for his impeachment after his public endorsement of cryptocurrency $Libra led to massive financial losses. The scandal erupted when Milei promoted the cryptocurrency on Twitter, causing thousands of Argentinians to invest their hard-earned money before insiders allegedly orchestrated a massive sell-off that crashed the coin’s value.
The incident has all the hallmarks of a classic cryptocurrency “rug-pull” scam, where developers and insiders pump up a token’s value through celebrity endorsements and hype, then suddenly sell their holdings at the peak, leaving everyday investors with worthless digital assets. In this case, the celebrity wasn’t a social media influencer or sports star – it was Argentina’s Head of State.
The financial damage to everyday Argentinians has been staggering, with losses estimated at $250 million. Many victims were likely attracted to the investment specifically because of Milei’s endorsement, seeing it as an opportunity to participate in their president’s vision of economic freedom. Instead, they were left holding worthless tokens while insiders allegedly walked away with millions.
At the center of these allegations is American consultant Hayden Davis, who brazenly admitted to making $100 million from the scheme. Davis claimed to have significant control over Milei’s public appearances and suggested close connections with the president’s inner circle. Evidence has emerged linking the $Libra launch to meetings in Argentina’s presidential offices, involving Milei’s sister and Chief of Staff, raising serious questions about who knew what and when.
Denials and Deflections
President Milei has attempted to distance himself from the scandal, blaming a Singapore start-up called KIP Protocol and insisting he did not personally profit from the scheme. However, his defense has done little to quell the growing outrage among Argentinians who feel betrayed by their President’s apparent involvement in what looks increasingly like government-adjacent fraud.
“You’ll notice that the company that organized the launch, KIP, explicitly stated that I had nothing to do with it,” Mr. Milei said.
Adding insult to injury, Milei has shown little sympathy for the victims, comparing their losses to gambling defeats rather than acknowledging the role his endorsement played in legitimizing the cryptocurrency to his supporters. This response has only intensified calls for impeachment and a thorough federal investigation into potential bribery, insider trading, and fraud at the highest levels of government.
The scandal couldn’t come at a worse time for Milei, who came to power promising to fix Argentina’s devastated economy. While many of his free-market policies have earned praise from conservatives worldwide, including President Donald Trump, this cryptocurrency scandal threatens to undermine his credibility and possibly his presidency.
