Here’s how Argentina’s President denied involvement in LIBRA crash

• LIBRA crash renews debate over pump-and-dump schemes in crypto markets.
• Javier Milei denies wrongdoing, dismisses most affected investors as bots amid legal scrutiny.

The LIBRA memecoin scandal continues to unfold, with new controversies surfacing daily.

Argentina’s President, Javier Milei, is now at the center of the storm after being accused of endorsing the cryptocurrency before its rapid collapse.

While Milei has denied promoting the token, the fallout has been severe, with investors facing heavy losses and the president now battling fraud lawsuits and impeachment calls.

Milei’s defense

As scrutiny intensifies, the incident raises critical questions about political influence in crypto markets and the risks of unregulated digital assets.

In his first public address since the Libra token controversy—now labeled “Libragate” by local media—Milei spoke with Todo Noticias.

He said,

“I did not promote that. What I did, I spread the word.”

What happened?

The Libertad project’s Solana-based token, Libra [LIBRA], saw a meteoric rise, reaching a $4.56 billion market cap on the 14th of February after Milei’s endorsement on X (formerly Twitter).

However, its value plummeted by 94% once he deleted the post, fueling accusations of a pump-and-dump scheme.

Defending his actions, Milei insisted he acted in “good faith” and had “nothing to hide” but admitted he must be more cautious moving forward.

He acknowledged the importance of setting clearer boundaries on appropriate conduct, and emphasized that any fallout from the token’s launch should be addressed solely by those directly involved.

He said,

“The state plays no role here.”

Who got impacted?

Milei dismissed concerns about the 44,000 affected investors, claiming that the majority were merely automated bots and said, 

“The best case scenario is 5,000 people.”

He further added, 

“I would tell you that the chances of there being Argentines is very, very remote.”

The fallout

Federal Judge María Servini in Buenos Aires is investigating fraud allegations against Milei regarding his purported endorsement of the token. The inquiry follows multiple legal complaints filed by Argentine lawyers.

Meanwhile, Economy Minister Luis Caputo sought to minimize the controversy. During his interview on the 17th of February, with La Política Online (according to a YouTube-generated translation), he stated:

“Cryptocurrencies are a tiny, infinitesimal world. It’s a world of specialists that’s very hard to understand.”

Caputo also highlighted the speculative nature of the crypto space, referring to many participants as “timbero” which translates to “gamblers”.

LIBRA’s price trajectory

Needless to say, the LIBRA token continues its downward spiral, trading at $0.3265, at press time, after a 12.10% decline in the past 24 hours, according to DexScreener.

Therefore, as the controversy unfolds, concerns over regulatory scrutiny and investor losses further intensify.

This leaves questions about accountability and the broader implications of political endorsements in the crypto market.