Argentine President's Crypto Endorsement Sparks Controversy

After endorsing the $LIBRA crypto token which initially surged in value, Argentine President Javier Milei faced backlash when the coin's worth rapidly declined. Accusations of pushing a potentially fraudulent investment led to his retraction and an announcement of investigations into possible legal violations.

Argentine President Javier Milei is in hot water following his social media promotion of a little-known cryptocurrency token, $LIBRA, which initially skyrocketed in price but soon fell sharply. On Friday evening, President Milei announced that the token would invigorate the economy and benefit small enterprises. However, optimism rapidly turned to skepticism as fears arose regarding the legitimacy of the coin, leading to a swift drop in value.

Milei deleted his post on X just five hours later, distancing himself from the currency. In a follow-up message, he claimed ignorance about the project's intricacies and stated that he would cease promoting it. "I was not familiar with the details of the project," he explained, seeking to mitigate his involvement.

In an official statement released on Saturday, Milei described his earlier endorsement as a routine promotion and declared that investigations would be underway to determine whether any legal boundaries were crossed—either by him or by others in his administration.

The political landscape has responded critically, with opposition parties branding the incident as an unprecedented scandal. A left-leaning coalition accused the president of endorsing a risky investment, while another faction announced plans to establish a congressional committee to delve deeper into the matter. The sequence of events has drawn comparisons to former President Trump's similarly risqué promotion of the $Trump token, which also experienced a meteoric rise followed by a severe downturn.