BUENOS AIRES (AFP) – Argentina’s President Javier Milei admitted making a mistake after promoting a cryptocurrency whose value soared and then crashed, with his office announcing an “urgent investigation”.
According to news outlets, Milei posted a message on social media platform X on Friday evening, praising a “private project” aimed at “stimulating the growth of the Argentine economy, by financing small businesses and Argentine entrepreneurs”.
“The world wants to invest in Argentina. $LIBRA,” the post reportedly said, naming the cryptocurrency along with a website for the project.
Hours later, Milei deleted the message, saying: “I did not know the details of the project and after learning about it, I decided not to continue promoting it.” He added he had “obviously no connection” with the “alleged private company”.
Argentine economists and crypto specialists, in addition to opposition political figures, criticised Milei and said that the digital asset could be a fraud or Ponzi scheme.
Industry observers called the operation a “rug pull” – a scam where developers unveil a crypto token, attract investors, then quickly cash out.
“Within minutes of the launch, multiple large holders began liquidating millions of USD worth of $LIBRA,” the Kobeissi Letter, which provides analysis on global capital markets, said in a thread on X.
“This included gains of +USD4 million or more as $LIBRA rose to USD4.6 billion in market (capitalisation). After the top was set at 5.40pm ET, the coin fell in a literal straight-line.”
In a statement on Saturday the Argentine presidency said that “in light of the events”, Milei “has decided to immediately involve the Anti-Corruption Office (OA) to determine whether any improper conduct occurred by any member of the national government, including the president himself”.
