BUENOS AIRES: Argentina President Javier Milei was facing criticism Saturday after promoting a cryptocurrency whose value soared, then quickly tanked, sparking accusations of fraud and calls for an investigation.
According to news outlets, the libertarian Milei had posted a message on social media platform X 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, explaining: “I did not know the details of the project and after learning about it, I decided not to continue spreading it.”
He added he had “obviously no connection” with the “alleged private company.”
But 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 +$4 million or more as $LIBRA rose to $4.6 billion in market cap. After the top was set at 5:40 PM ET, the coin fell in a literal straight-line.”
Javier Smaldone, a computer scientist and digital influencer known for his denunciation of pyramid schemes, called the short-lived operation a “global scam,“ in a post on X.
“So far, it has been discovered that the profit made is around $107 million,“ he told AFP. “Maybe more.”
On Saturday, former president and opposition figure Cristina Kirchner called Milei a “crypto-scammer.”
Maximiliano Ferraro, of the center-right Civic Coalition, said Parliament must create a “special inquiry commission” to “clarify the facts and determine responsibility.”
It appeared Milei was preparing to defend himself.
Francisco Onato, identified in local media as Milei's personal lawyer, posted on X that the president merely highlighted a company to boost Argentina's economy.
His behavior “does not constitute any crime, due to the lack of intention,“ he argued.
