Crypto: The Argentine President In The Crosshairs Of Justice

Argentina, already shaken by a persistent economic crisis, today sees its president Javier Milei plunged into a judicial storm related to the crypto Libra. While Milei, a champion of libertarianism, promised a monetary revolution, a hastily deleted promotional tweet and opaque transactions triggered a sensational investigation. Amid speculative surges, suspicions of pump-and-dump schemes, and criminal proceedings, the Libra affair reveals the dark areas of a crypto ecosystem in search of credibility.

Libra: the meteoric rise and suspicious fall

It all starts with a tweet. On February 17, 2025, Javier Milei, known for his explosive statements, boasts on X about the merits of Libra, a meme coin based on Solana. “The world wants to invest in Argentina,” he claims to his millions of followers.

The result? The value of Libra skyrockets, reaching a market capitalization of $4.5 billion in a few hours. A spectacular performance, but ephemeral.

However, behind this euphoria lies a troubling mechanism. A handful of wallets holding most of the Libra tokens were liquidated shortly after the peak. Hayden Davis, an entrepreneur linked to the Kelsier company, admits to having gained $100 million from the project. A coincidence? For prosecutors, it is evident: Libra resembles an organized dumping operation, benefiting from presidential influence.

Milei, for his part, quickly distances himself. His promotional tweet is deleted, and his lawyers cite a “lack of understanding of crypto mechanisms.”

Too late. Fraud complaints pile up, and prosecutor Eduardo Taiano demands the freezing of assets related to Libra — nearly $100 million in crypto — as well as access to deleted posts. Argentine regulators, supported by Interpol, are now tracking these funds across international exchanges.

Crypto, politics, and contradictions: Milei’s double game

Javier Milei, often praised by Bitcoiners, appears here in a paradoxical light. Has the man who compares the state to a “mafia gang” succumbed to the sirens of shitcoins? In reality, his support for Libra — a token with no real utility, unlike bitcoin — shocks purists. Maximalists denounce a betrayal of libertarian principles, where crypto would be reduced to a speculative tool rather than a monetary revolution.

This affair also raises unprecedented legal questions. How to prosecute a sitting president for fraudulent promotion of a decentralized asset? Taiano relies on international cooperation, demanding platforms like Binance or Kraken to block suspicious transactions. A technical and political challenge, in a country where crypto legislation remains vague.

The investigation into Libra could mark a turning point for crypto in Argentina — and beyond. If Milei currently escapes direct sanctions, the freezing of assets and judicial pressures illustrate a growing willingness to regulate a sector perceived as a jungle. However, as the example of El Salvador shows, where Nayib Bukele continues to buy bitcoin despite warnings from the IMF, states oscillate between repression and adoption.