- A Congressional report accused Argentine President Milei of staging a crypto scam.
- LIBRA token surged after Milei’s endorsement before crashing in a textbook rug pull.
- Evidence shows 16 meetings between Milei and LIBRA creators at the presidential residence.
A congressional investigative commission released a 200-page report on Argentine President Javier Milei’s alleged involvement in the now-infamous LIBRA crypto scandal.
The document was published after three months of inquiry in the Chamber of Deputies and accuses Milei and his sister, Presidency Secretary Karina Milei, of playing direct roles in promoting a scheme that caused millions of dollars in losses for citizens.
Although the report is not a criminal ruling, lawmakers claim that evidence shows a large-scale scam via the misuse of presidential influence. Similar allegations have been put forth in the US by Democrats against President Donald Trump.
President Used His Office to Boost an Alleged Scam?
According to the report, President Milei used his position to promote the LIBRA token. In an X post, Milei wrote, “The world wants to invest in Argentina. $LIBRA,” while sharing the project’s contract number, which was not publicly available until he made it so.
Following Milei’s Feb post, LIBRA’s price shot up to $5 per token. Within hours, however, the developers withdrew between $80 million and $100 million, rugging investors. The report claims that without Milei’s involvement, the token would never have achieved such volume.
16 Meetings at the Heart of the Scandal
Investigators found evidence that President Milei met with LIBRA creator Hayden Davis and Argentine businessmen Mauricio Novelli and Manuel Terrones Godoy 16 times inside the Casa Rosada and the presidential residence.
The report also connected dots with Milei’s promotion of another token, KIP, in December 2024, a project similarly tied to Novelli and Terrones Godoy. “The investigated events are compatible with an alleged scam,” said Coalición Cívica deputy and Maximiliano Ferraro, president of the commission.
A Judicial Wall
While Congress pushed forward with its inquiry, lawmakers accused federal Judge Marcelo Martínez de Giorgi of obstructing their work by refusing access to case files. Despite this, the LIBRA scandal has attracted foreign attention.
More than 100 criminal complaints have been filed by investors and civic organizations in Argentina, while a New York law firm is currently pursuing a class-action lawsuit against Milei. Both Javier and Karina Milei declined to participate in the legislative investigation.
Argentina’s Crypto Future
The Argentine banking sector is about to re-enter the crypto market. At LABITCONF 2025, Gabriel Campa, Head of Digital Assets at Towerbank, said that several major banks have already built internal crypto services, waiting only for regulatory approval from Milei’s administration.
Campa noted that banks will likely pursue a hybrid model, with some developing in-house systems and others partnering with crypto firms.
Related: Burwick Investigates LIBRA Token Launch: Did a “Deceptive” Plan Empty Investors’ Bags?
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