Argentina's LIBRA Scandal: Impact on Milei's
Published 6/17/2026, 7:38:50 AM
What Happened
On February 14, 2025, President Javier Milei promoted the $LIBRA token on X (Twitter), claiming it would fund small Argentine businesses. Federal police forensics reveal the token was created at 18:38 on the Solana blockchain and Milei tweeted at 19:01 — just 23 minutes later — and the contract was not publicly accessible online before his post, directly contradicting his claim to have "found it on the internet."
Within hours, the token crashed approximately 89–96%, resulting in:
| Metric | Value |
|---|---|
| Estimated investor losses | ~$250 million |
| Estimated victims worldwide | 85,000+ |
| Market cap at peak | ~$4.5 billion |
| Token value drop | ~89–96% within hours |
Evidence of Milei's Involvement
Phone records from Argentina's federal investigation reveal 7 calls between Milei and Mauricio Novelli on February 14, 2025, including calls moments before and after his tweet. Documents recovered from Novelli's seized devices outline an alleged $5 million payment agreement for Milei's support, with $507,500 traced to Chief of Cabinet Manuel Adorni within 42 minutes of a January 30, 2025 meeting at Casa Rosada.
| Key Finding | Detail |
|---|---|
| Token creation | Feb 14, 2025 at 18:38 (Solana blockchain) |
| Milei's tweet | 19:01 — 23 minutes after creation |
| Phone calls (Milei–Novelli) | 7 calls on Feb 14, including pre/post-launch |
| Alleged payment | $5 million agreement documented |
| Adorni payment | $507,500 (matching Davis transfer) |
Political and Regulatory Fallout
Congressional Actions:
- 112+ criminal complaints filed within 48 hours
- April 8, 2025: Argentina's Chamber of Deputies approved an investigation commission
- November 2025: Congressional commission issued a 200-page report concluding Milei "used his presidential role to spread an alleged scam"
Legal Exposure:
- Milei remains a "person of interest" in ongoing federal investigations in Argentina and the United States
- Argentine prosecutors are considering summoning Milei as a suspect (as of March 2026)
- Hayden Davis is sought via Interpol red notice
Attempts to Contain:
- Milei dissolved the Investigative Task Force (UTI) via Decree 332/2025 in May 2025, claiming it "completed its assigned task" — days after a judge ordered bank records unsealed
- Anti-Corruption Office cleared Milei in June 2025, concluding his post was "personal" not "official"
Pattern of Prior Failed Crypto Promotions:
| Token/Platform | Year | Outcome |
|---|---|---|
| CoinX | 2021 | Banned by National Securities Commission as potential Ponzi scheme |
| Vulcano Game NFT | 2022 | Token price dropped to $0 after Milei's promotion |
Impact on Milei's Crypto-Friendly Agenda
Negative Consequences
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Credibility Damage: Federal police forensics contradict Milei's core defense. The Congressional report concluded his presidential image was "exploited for profit" by scheme operators.
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Political Vulnerability: Despite not being charged, ongoing investigations divert attention and provide ammunition to opposition — though analysts note they lack votes to advance impeachment.
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Institutional Trust: Investigation delays — including 3 failed attempts to close the criminal case and over a year delay in examining Novelli's phone — suggest political protection dynamics at play.
Resilience Factors
Milei has proven "extremely resilient from a political standpoint" with popular support remaining elevated. No viable opposition has capitalized on the crisis, and elections are not until October 2027. His broader deregulatory agenda continues under Economy Minister Sturzenegger.
Conclusion
The LIBRA scandal has significantly complicated Milei's crypto-friendly agenda by exposing a credibility gap between his libertarian rhetoric and personal conduct. Federal police forensics confirm Milei was the first to publish the token contract, undermining his defense of ignorance. However, Milei's core political position remains intact for now, and the scandal has not fundamentally altered Argentina's deregulatory approach to cryptocurrencies — though it has highlighted the risks of political endorsements in crypto markets.
The investigation continues with new evidence emerging as recently as June 2026, suggesting this crisis is far from resolved. Whether Milei faces criminal charges or political consequences will depend on the outcome of ongoing Argentine and U.S. investigations.