"Milei Denies LIBRA Endorsement Amid 'Libragate' Scandal"

Argentina's crypto-friendly president, Javier Milei, has denied accusations that he endorsed the controversial LIBRA token, dismissing claims that he promoted the project in an interview with Todo Noticias on Feb. 17. Milei asserted, "I did not promote that. What I did, I spread the word," marking his first public response to the controversy, dubbed "Libragate" by local media.

The scandal erupted after Milei posted about LIBRA token on X, leading to an astronomical rally that pushed its market capitalization to $4.56 billion. However, the token crashed by 94% shortly after he deleted the post, prompting accusations of a pump-and-dump scheme. Despite the backlash, Milei maintains that he has "nothing to hide" and insists that he acted in "good faith." He also admitted that he has learned a valuable lesson from the debacle, vowing to be more cautious in filtering information before sharing it publicly. "The state plays no role here," he stated, distancing himself from the scandal.

One of the most contentious aspects of the LIBRA token crash is its impact on investors. Reports suggest that around 44,000 people may have suffered losses, but Milei disputes this number, claiming that most of them were bots. "The best-case scenario is 5,000 people were involved," Milei stated, adding that the likelihood of Argentine investors being affected is "very, very remote."

However, some in the crypto industry believe the controversy will have little impact on Argentina's overall adoption of digital assets. María Fernanda Juppet, CEO of Argentine crypto exchange CryptoMKT, noted that most Argentine crypto transactions involve dollar-pegged stablecoins. "The Milei case does not affect crypto adoption in the country but rather opens a political discussion. It is not a rejection of technology or the change in the way money is used," she explained.

Milei has admitted to previously meeting with representatives of KIP Protocol, a Web3 firm, but insists he had no prior knowledge of the specifics of the LIBRA token. He initially praised the project as a potential tool to promote Argentina's economy but later clarified that he had "no connection" to the firm behind it. In response to the allegations, KIP Protocol has denied creating or marketing the token. The company stated in a Feb. 17