The federal prosecutor’s office will examine whether Milei engaged in fraud or criminal association or was in breach of his duties when he praised the $LIBRA cryptocurrency on social media on Friday evening, according to news reports.
The currency’s value soared then crashed, and Milei deleted his blessing hours later, admitting he had made a mistake.
Argentine economists, crypto specialists and opposition political figures criticized self-declared “anarcho-capitalist” Milei, an economist by training, and said the digital asset could be a fraud or Ponzi scheme.
Industry observers said the operation was likely a “rug pull” — a scam where developers unveil a crypto token, attract investors, then quickly cash out.
Rights NGO Observatory for the Right to the City, one of several complainants, alleges Milei formed part of a “criminal organization that organized a fraud with the $LIBRA cryptocurrency that simultaneously affected more than 40,000 people with losses of more than $4 billion.”
The Kobeissi Letter publication, which provides analysis on global capital markets, said on X Friday that within minutes of its launch, “multiple large holders began liquidating MILLIONS of USD worth of $LIBRA.”
“This included gains of +$4 million or more as $LIBRA rose to $4.6 billion in market (capitalization),” it reported.
Milei later said he did not know “the details of the project and after learning about it, I decided not to continue promoting it.”
He added he had “obviously no connection” with the “alleged private company.”
Nevertheless, former president and opposition figure Cristina Kirchner called Milei a “crypto-scammer” and opposition parliamentarians announced they will institute impeachment proceedings against him.
Other parties are seeking the creation of a special parliamentary commission to question Milei.
Improper conduct?
The main stocks on the Buenos Aires Stock Exchange opened nearly four percent lower on Monday — a public holiday in the United States with markets there closed.
The presidency on Saturday announced that Argentina’s Anti-Corruption Office will be tasked with determining whether any improper conduct occurred.
It would also create a task force to carry out an “urgent investigation into the launch of the cryptocurrency $LIBRA, and all companies or individuals involved.”
The prosecutor’s office will also look into Julian Peh — the CEO of companies that participated in the creation of $LIBRA — as well as Chamber of Deputies president Martin Menem, who had reposted Milei’s original endorsement.
© 2025 AFP
