- $LIBRA fell over 96%, sparking asset freezes and judicial actions.
- Argentina Congress backs official inquiry into President’s role.
- Investors lost millions as $LIBRA liquidity collapsed.
In Argentina, President Javier Milei is under judicial scrutiny after promoting the $LIBRA token, a private cryptocurrency project.
The incident highlights serious ramifications for political interference in crypto markets, resulting in sharp investor losses and legal reactions.
The $LIBRA token collapse, launched with the endorsement of Argentina’s President Javier Milei, saw a dramatic decline in value shortly after promotion. The ensuing financial losses prompted judicial actions and asset freezes against key figures involved. Javier Milei, having promoted the $LIBRA token, distanced himself soon after its failure, claiming no real connection with the project. His actions, alongside those of associates like Karina Milei, now face legal scrutiny.
“A few hours ago I posted a tweet, as I have countless times before, supporting an alleged private venture with which I obviously have no connection. I wasn’t informed of the project’s details, and after learning about them I decided not to continue promoting it (that’s why I deleted the tweet)” – Javier Milei, source.
The collapse significantly impacted investors and markets, losing millions and triggering asset freezes. With $LIBRA’s decrease, investor caution spread to similar Solana-based projects. The political and financial implications are vast, sparking investigations from both a legal standpoint and within the broader crypto community. Judicial inquiries continue as authorities explore links between Milei and $LIBRA developers.
Financial and regulatory consequences loom, as the case may set a precedent for political accountability in crypto promotions. Argentina’s Congress inquiry into the President’s involvement reflects increased scrutiny over political figures engaging in speculative crypto activities.
