A new congressional report in Argentina is accusing President Javier Milei of providing “essential collaboration” to the now-collapsed $LIBRA cryptocurrency project. Critics say this token 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. He allegedly pinned the promotion 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. This happened as early insiders cashed out, leaving over 114,000 wallets 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. These include 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. He maintains 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. Milei already faces an active investigation there, 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 the 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. It is also proving to be a defining test for how leaders navigate the intersection of digital assets, influence, and public accountability.