A new congressional report in Argentina is accusing President Javier Milei of providing “essential collaboration” to the now-collapsed $LIBRA cryptocurrency project, a token critics say operated as a large-scale rug pull that wiped out more than $107 million in investor funds.
The 200-page document, released by an opposition-led committee, argues that the project would never have reached its explosive trading volume without Milei’s highly visible social media endorsement, which he allegedly pinned for hours during its launch.
According to lawmakers, that promotion used “the authority of the presidency” to legitimize a token marketed as a lifeline for small Argentine businesses. Instead, $LIBRA soared to a $4.5 billion market cap before crashing over 80% within hours, as early insiders cashed out and over 114,000 wallets were left holding losses.
Allegations Extend Beyond A Single Token
The committee argues that $LIBRA fits into a broader pattern. Investigators linked similar trading behaviors to prior projects associated with Milei’s online presence, including KIP Protocol, an NFT game called Vulcano, and a company named CoinX, which was later probed for fraud. While none of these cases have resulted in convictions, lawmakers say the repeated promotional involvement raises red flags about potential conflicts and misuse of influence.
Milei has denied wrongdoing, maintaining he had no operational involvement in $LIBRA and cannot be held responsible for third-party token dynamics.
Legal Pressure Intensifies
The controversy is far from over. The report has been formally submitted to Argentina’s judiciary, where Milei already faces an active investigation as well as a class-action lawsuit filed by a New York law firm on behalf of international investors. Although an internal ethics office previously cleared him of violating public integrity rules, the congressional committee argues that probe lacked independence.
Within government, Milei’s administration has been accused of a “total lack of cooperation.” Neither the President nor his sister, Chief of Staff Karina Milei, appeared for questioning. The matter escalated further when Milei disbanded a state investigative task force that had been established to examine the scandal.
As courts weigh the report’s findings, the $LIBRA collapse is becoming one of the most politically charged crypto scandals in Latin America, and a defining test for how leaders navigate the intersection of digital assets, influence, and public accountability.
