Investigation Links Argentina’s President Javier Milei to $LIBRA Cryptocurrency Scam, Political Accountability Questioned

Original article: Criptoestafa $LIBRA: comisión apunta responsabilidad política de Javier y Karina Milei y cuestiona uso de la investidura presidencia

An investigative committee from the Argentine Chamber of Deputies has concluded that President Javier Milei used his presidential position to promote the cryptocurrency $LIBRA, which is under investigation as part of a «suspected international scam,» attributing «political responsibility» to both him and his sister, Karina Milei, who serves as Secretary General of the Presidency.

The final report from the $LIBRA Commission, presented yesterday after three months of research spanning over 200 pages, states that the president «compromised the presidential mandate in an act that cannot be characterized as private, demonstrating a sustained behavior that blurs the lines between public and private interests.»

“$LIBRA represents a case of significant institutional gravity,” warned the fourteen opposition deputies who signed the document, led by Commission President Maximiliano Ferraro (Civic Coalition).

“Javier Milei used his presidential authority, and Karina Milei, at the very least, facilitated the government’s official premises to carry out an act that is being investigated as an alleged international scam,” they emphasized.

The commission, composed of and backed by opposition blocs, recommended that Congress assess whether President Javier Milei has exhibited «malpractice in the performance of his duties.»

This scandal emerged in mid-February when the far-right president endorsed the launch of the new digital currency via social media, only to retract the messages hours later.

During that time, demand for the cryptocurrency skyrocketed, with its price climbing from $0.003 to $5.54, facilitating millions in transactions before it subsequently plummeted. Over 100,000 cryptocurrency buyers claim to be victims of a massive scam, losing astronomical sums exceeding $286 million, thanks to the momentum fueled by the «libertarian’s» postings.

According to legislators, Milei’s post “would have provided essential support for the execution of the scheme.”

Unexplained Connections by Milei

The committee’s conclusion rests on the unique and active role allegedly played by Milei. On February 14, the President was the first person globally to share the contract number for purchasing $LIBRA on his official X account, a piece of information that was not publicly accessible.

To this day, the Argentine president has not clarified how he obtained this information, which the committee asserts would strengthen the hypothesis of a prior and direct connection with the cryptocurrency’s creators, as reported by Página 12.

The parliamentary investigation detailed the «direct economic connections» between the main figures behind the launch: U.S. businessman Hayden Davis (creator of $LIBRA) and local operators Mauricio Novelli and Manuel Terrones Godoy, along with the then-advisor of the National Securities Commission, Sergio Morales.

The report indicates that there was no justified reason for the 16 meetings held between Milei and these actors, which were logged at the Casa Rosada and Quinta de Olivos and likely facilitated by the General Secretariat of the Presidency, led by Karina Milei.

Details of the $LIBRA Cryptocurrency Scam

Legislators determined that $LIBRA was technically a memecoin designed for a «rug pull» scheme by a group with inside information. This type of scam involves creators promoting the asset, waiting for thousands of investors to buy in fueled by euphoria, and then massively selling their holdings, causing value to collapse and leaving others with losses.

“We believe there was trickery and deception in a typical scam pattern, specifically a rug pull, a common operation in the cryptocurrency world where there is an initial high concentration of offers; a posting by a public figure making the cryptocurrency known; buyer entry, and then a withdrawal of funds by those who financed the crypto. Immediately, its value plummets and buyers are left empty-handed. This modus operandi has been confirmed in this investigation,” explained Deputy Oscar Agost Carreño (Federal Encounter), as reported by La Nación.

The extent of the damages is quantified in the report: 114,410 virtual wallets suffered losses. Among them, 498 lost over $100,000, and 3,144 lost between $10,000 and $100,000, while only 36 wallets gained more than $1 million each.

These figures contradict public statements made by President Milei, who had downplayed the impact, claiming that the number of affected Argentines would not exceed five. The commission received an official report from the exchange Ripio indicating that 1,329 Argentine citizens traded with $LIBRA solely on that platform.

A Repeated Pattern

The investigative committee emphasized that the $LIBRA case «was not an isolated incident.» Legislators noted that in December 2024, a similar financial maneuver occurred with the digital currency of KIP Protocol ($KIP), which was also promoted by the Argentine president alongside the same operators.

This recurrence makes it plausible that there was a deliberate intent to evade institutional controls, concluded the 205-page document.

Additionally, the legislators who were part of the $LIBRA Commission noted that in both launches, the «libertarian» failed to involve state regulatory bodies and that «there was no prior evaluation by the Argentine state of $LIBRA before its presidential promotion.»

Is Impeachment in Store for Milei?

As a result of the investigation, the committee not only recommended a potential impeachment but also resolved to file criminal charges against several officials in the Executive and Judicial branches for obstructing the inquiry. These include Justice Minister Mariano Cúneo Libarona and the prosecutor handling the $LIBRA case, Eduardo Taiano.

The complete report has been sent to the judiciary to support the ongoing criminal investigation. However, the future of parliamentary action remains uncertain. Starting December 10, with the incorporation of newly elected legislators from October, the ruling party will have a more favorable Congress, which could hinder any impeachment initiative from advancing.