Milei's $LIBRA Token Surge and Plunge: President Denies Wrongdoing Amid Fraud Allegations

Argentine President Javier Milei has found himself at the center of a controversy surrounding the collapse of the $LIBRA token. In a social media post on Friday, Milei shared information about the cryptocurrency, which aimed to boost Argentina's economy by funding small businesses. The post included a link to a website selling the digital asset, featuring Milei's well-known slogan, "Long live freedom." Following his remarks, the token's value surged before plummeting, leading to significant financial losses for investors.

Milei has since denied any wrongdoing, asserting that his intentions were solely to support economic growth and entrepreneurship in Argentina. He compared the investors' losses to gambling risks, stating, "If you go to a casino and lose money, what's there to complain about when you knew the risks?" The president also argued that his social media post did not constitute an endorsement but was merely an act of sharing information.

The incident has triggered a wave of legal and political repercussions. Opposition leaders have accused Milei of being complicit in a fraudulent scheme and have filed multiple criminal complaints, including one with the U.S. Department of Justice. The Popular Unity political party, among others, lodged a formal complaint alleging that $LIBRA was part of a "rug pull" scam—a deceptive practice where developers inflate a token's value before abruptly withdrawing funds and leaving investors with worthless assets.

A judge has been assigned to assess whether Milei should face fraud charges in connection with the incident. Meanwhile, critics have drawn parallels between this case and former U.S. President Donald Trump's recent launch of the $TRUMP memecoin, which experienced a similar boom-and-bust cycle.

In response to the backlash, the presidential office accused political adversaries of exploiting the situation for personal gain. It further announced that Argentina's anti-corruption office had been directed to investigate the matter to ensure transparency and address public concerns.

Despite the growing controversy, Milei remains firm in his stance, dismissing allegations of wrongdoing while maintaining that his original intention was to highlight potential funding avenues for Argentine entrepreneurs.