The controversy surrounding the LIBRA memecoin debacle is deepening, with fresh scandals emerging on a daily basis.
Javier Milei, the President of Argentina, finds himself embroiled in the center of the turmoil, facing allegations of supporting the digital currency that later suffered a rapid downfall.
Despite Milei refuting claims of actively endorsing the token, the aftermath has been severe, leaving investors with significant losses and triggering legal actions and calls for his impeachment.
Milei’s Position
With scrutiny mounting, the incident underscores significant concerns about political influence in cryptocurrency markets and the dangers posed by unregulated digital assets.
In his first public statement following the LIBRA token debacle—recently dubbed “Libragate” by local media—Milei addressed the issue in an interview with Todo Noticias.
He mentioned,
“I didn’t promote that. I simply shared information.”
What Transpired?
The Libra [LIBRA] token from the Libertad project, built on Solana, experienced a rapid surge, reaching a $4.56 billion market capitalization on February 14th following Milei’s backing on X (previously known as Twitter).
However, after Milei removed his endorsement, the token’s value plummeted by 94%, leading to allegations of a pump-and-dump operation.
Milei defended his actions, claiming he acted in “good faith” with transparency, although he acknowledged the need for more careful consideration in the future.
He stressed the importance of establishing clearer guidelines for appropriate behavior and stated that any repercussions from the token’s launch should be dealt with solely by those directly involved.
He expressed,
“The government has no part in this.”
Who Suffered?
Milei downplayed concerns regarding the 44,000 impacted investors, suggesting that the majority were likely automated bots.
He remarked,
“The most optimistic case involves 5,000 individuals.”
Furthermore, he remarked,
“I would venture to say that the probability of Argentine involvement is highly unlikely.”
The Aftermath
Federal Judge María Servini in Buenos Aires is looking into fraud accusations against Milei related to his alleged support of the token, following numerous legal complaints filed by Argentine attorneys.
Meanwhile, Economy Minister Luis Caputo sought to downplay the situation, labeling cryptocurrencies as a niche and complex realm that few truly understand.
Caputo highlighted the speculative nature of the crypto market, referring to many participants as “gamblers.”
LIBRA’s Price Movement
Undoubtedly, the LIBRA token continues on its downward trajectory, trading at $0.3265 at the time of writing, following a 12.10% drop over the past 24 hours, according to DexScreener.
Therefore, as the saga unfolds, concerns over regulatory oversight and investor losses heighten, raising questions about accountability and the broader implications of political endorsements in the crypto sphere.