Argentine President Javier Milei plunged headfirst into hot water after promoting the controversial $LIBRA cryptocurrency on social media, only to delete his endorsement hours later as the project spiraled into what investigators are calling a classic “rug pull” scheme.
The Valentine’s Day launch of $LIBRA quickly turned into a nightmare for thousands of investors who lost millions. The cryptocurrency, created by Delaware-registered Kelsier Ventures, was part of the “Viva La Libertad” project supposedly aimed at funding private ventures in Argentina.
Milei’s enthusiastic social media push on February 14 sent prices soaring 1,300% in hours. Trading volume hit $1.5 billion as 40,000 investors rushed in. The market cap briefly touched $4.5 billion. Then it all came crashing down.
Just five hours after his promotion, Milei deleted his post, claiming he “didn’t understand enough” about the project. Too late. The damage was done. Investigators now report that 84% of all tokens were controlled by just three wallets—classic setup for a scam. The market cap calculation, which multiplies price by circulating supply, failed to reflect the actual invested value in LIBRA, misleading many investors about its true worth.
The clock was ticking on this crypto con from the moment Milei hit “post”—84% controlled by three wallets spelled disaster.
Investors lost an estimated $250 million while insiders allegedly pocketed $180 million. Ouch.
The fallout has been swift and brutal. Over 100 criminal complaints have been filed against Milei. The U.S. Department of Justice is investigating. An Argentine judge is digging into Milei’s role, and international law firms are organizing class action lawsuits.
Key figures in the scandal include Hayden Davies, CEO of Kelsier Ventures, and several people close to Milei—including his sister Karina and advisor Santiago Caputo. Records show Milei had previously met with executives from KIP Protocol, raising eyebrows about what he knew and when.
This marks the first major scandal of Milei’s presidency, sending his approval rating down 4 points. With midterm elections approaching, opposition parties are already calling for impeachment. Before the scandal, approximately 5 million Argentines were using digital assets daily as a hedge against the country’s triple-digit inflation and weakening peso. The timing couldn’t be worse for a president whose economic credibility is now as sketchy as a pump-and-dump crypto scheme.
Socialist Party lawmaker Esteban Paulón has introduced a formal bill for impeachment proceedings, though it currently lacks sufficient support in the Impeachment Commission.
