The scandal began with a tweet. On Valentine's Day, President Javier Milei of Argentina announced the launch of a new cryptocurrency called $Libra, sharing a purchase code at 7:01 p.m. Within hours, thousands flocked to invest, catapulting the coin's value to unprecedented heights before it dramatically plummeted.
In what industry insiders labelled as a textbook “rug-pull,” early investors cashed out, causing a catastrophic loss of nearly $250 million for latecomers. This event rocked Argentina, igniting outrage among the populace who alleged that Milei had duped them for personal gain.
The fallout led to a deluge of impeachment calls from the opposition, alongside a flurry of criminal complaints from aggrieved citizens. A federal prosecutor has launched an investigation with Milei now squarely in the crosshairs.
As tensions escalated in Argentina, Milei ventured to Washington to appear at the Conservative Political Action Conference where he delivered a defiant address shortly before President Trump. Ironically, Trump himself faced scrutiny over a similar cryptocurrency venture, $Trump, which also saw substantial profits for insiders while an estimated 800,000 investors suffered losses totaling approximately $2 billion.
The dual controversies surrounding these presidential-endorsed cryptocurrencies have not only raised questions about ethical governance but have also spotlighted the volatile landscape of the cryptocurrency market, where investors are left navigating murky waters after being initially lured by high-profile endorsements.
