In February 2025, Javier Milei unexpectedly promoted an unknown memecoin, Libra ($LIBRA), on social media platform X. There were no official announcements or government decrees. Just a post on his personal account, touting a crypto initiative ‘to support small Argentine businesses’.
What followed was dramatic. Within hours, the token surged to over $2 billion in market capitalization… only to crash by 90%, trapping countless investors. The scandal, dubbed ‘Cryptogate’ by Argentine media, triggered a political and legal earthquake.
A President, a Memecoin, and Two Billion Dollars Vanished
Under pressure, Milei himself requested the Anticorruption Office to investigate if he had violated any laws. The verdict is in: no breach of public ethics.
Why? Because the message, posted from a personal account without using public resources or official acts, did not implicate the State. ‘An act of private communication,’ ruled the Office. The case was closed on administrative grounds.
Behind the Scenes, Another Investigation Unfolds
However, this decision did not put an end to the affair. A criminal inquiry is ongoing in a federal court, with a class action lawsuit in the works. Victims of the Libra crash in Argentina, the US, and the UK are seeking justice.
Suspicious elements persist. The report reveals that Javier Milei met with Hayden Davis, co-creator of Libra, as early as January 30. Two wallets linked to Davis, holding $57.6 million in USDC, have been frozen by a US court order.
A Dissolution that Raises Questions
One detail raises eyebrows: the investigative unit working on the case in Argentina was dissolved by Milei in May, shortly after a judge demanded access to his and his sister’s bank statements. Officially, the team had ‘completed its mission.’ Unofficially, criticism abounds.
A Crypto, a Crisis, and a President in Jeopardy
Javier Milei emerges temporarily unscathed, but not unharmed. His reputation as a reformer is tarnished. The Libra saga has become a symbol of the potential pitfalls between political power, personal communication, and highly volatile crypto markets.
The criminal investigation will determine if the Argentine president crossed the line. But one thing is certain: for many investors, the damage is already painfully real.
