Argentine President Javier Milei has broken his silence over a cryptocurrency scandal that has tarnished his reputation, sparked lawsuits, and led to calls for his impeachment.
Milei confirmed meeting with the creators of the Libra memecoin but denied promoting it to encourage purchases. Instead, he claimed he sought to raise awareness about using crypto to support Argentine businesses.
“I’m not an expert. My specialty is economic growth, with and without money,” Milei said in a Monday night interview with Todo Noticias. “As a technology enthusiast, I saw a tool for financing entrepreneurs and shared it.”
The controversy erupted Friday when Milei directed his millions of social media followers to Libra, causing its value to skyrocket. Within hours, the token’s price quadrupled, reaching a $4 billion market cap, before crashing and leaving speculators with massive losses.
Political and Market Fallout
Facing his most serious crisis since taking office, Milei acknowledged the need for greater caution in whom he engages with.
“The most important lesson is that I can’t keep being the same Javier Milei as always,” he admitted. “Sadly, I have to put up more filters so that it’s not as easy to reach me.”
While Argentines demanded answers, the presidential palace initially remained silent. Economy Minister Luis Caputo was the first to address the issue, calling it an unforced error in a niche market. He defended Milei, insisting the president had no ill intent and had committed no crime.
“Cryptocurrencies are an infinitesimal world,” Caputo said. “I don’t understand crypto either, and it’s been explained to me 800,000 times.”
Despite assurances, the scandal rattled investors. The S&P Merval Index, Argentina’s stock benchmark, plunged 5.6% Monday—its worst drop since July. The government attempted to shift focus by highlighting its budget surplus and Milei’s meeting with U.S. Senator Steve Daines.
Legal and International Ramifications
As lawsuits mounted, some Milei allies claimed he had been deceived by Libra’s creators. Meanwhile, Hayden Davis, CEO of Kelsier Ventures, which helped launch the token, accused unnamed figures close to Milei of orchestrating the debacle.
“I firmly believe he’s not corrupt,” Davis said. “I don’t think Milei even fully knows what’s going on.”
Law firms, including Moyano & Asociados, have filed complaints with regulators such as the U.S. Securities and Exchange Commission. An Argentine judge is now overseeing more than 100 legal cases against Milei. Opposition leaders have called for his impeachment, though the move is unlikely to succeed without a two-thirds congressional majority.
Despite the controversy, Milei remains focused on his diplomatic agenda. He is scheduled to fly to Washington on Wednesday night, hoping to meet with former U.S. President Donald Trump. His key objectives include securing additional IMF funding and negotiating exemptions from potential Trump-era tariffs.
Related Topics:
