- Argentine President Javier Milei promoted a cryptocurrency called $Libra through his official X account.
- The scheme resulted in 44,000 investors losing their investments while nine individuals profited $87 million.
- The cryptocurrency promotion led to accusations of a Ponzi scheme and sparked a political crisis.
- The project used the president’s campaign slogan “Viva la libertad” in its domain name.
- The incident has drawn severe criticism from economic experts and the Argentine press.
Argentina‘s cryptocurrency markets faced turbulence after President Javier Milei endorsed a digital asset through his official social media account, resulting in what critics are calling a sophisticated pump-and-dump scheme that cost thousands of investors their savings while enriching a select few.
On February 14, 2025, Milei shared a promotional message on X (formerly Twitter), stating “Liberal Argentina is growing!!!” while endorsing a cryptocurrency called $Libra. The project’s website, vivalalibertadproject.com, strategically incorporated the president’s campaign slogan, lending it an air of official credibility.
The aftermath proved devastating for retail investors. According to Spanish economist Eduardo Garzón, the scheme resulted in just nine individuals securing profits of $87 million (€83 million), while more than 44,000 investors lost their entire investment. The incident has drawn parallels to classic Ponzi schemes, where early investors profit at the expense of later participants.
Argentine media outlets, including major newspapers, have labeled the incident “Cryptogate” and “an unprecedented crisis,” highlighting the gravity of a sitting president’s involvement in promoting an unregulated financial instrument. The controversy comes at a particularly sensitive time, as Argentina faces significant economic challenges, including the recent renewal of a two-year-old budget for 2025.
The incident raises serious questions about the intersection of political power and cryptocurrency promotion, potentially setting a concerning precedent for government officials’ involvement in speculative digital assets. Financial experts warn that such high-level endorsements could undermine public trust in both governmental institutions and legitimate cryptocurrency projects.
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