Javier Milei Defends Actions Amid Libra Memecoin Scandal
Argentine President Javier Milei has broken his silence on the Libra memecoin controversy, which has sparked lawsuits and impeachment calls. Milei confirmed meeting with the project's creators, asserting his social media post aimed to promote crypto solutions for Argentine businesses, not encourage speculative buying.
Milei Speaks Out on Libra Token Collapse
Milei confirmed meeting with the Libra token creators but denied promoting it to drive purchases, claiming his intention was to spotlight its potential to support Argentine entrepreneurs. “I’m not a crypto expert—my passion is driving economic growth,” Milei stated during an interview with Todo Noticias.
The controversy erupted after Milei’s social media post boosted Libra’s value to $4 billion, only for it to collapse hours later, costing investors millions. Despite the backlash, Economy Minister Luis Caputo defended Milei, stating the president acted without malicious intent and was unfamiliar with the complexities of crypto markets.
Political and Market Fallout
- Argentina’s S&P Merval Index plunged 5.6%, marking its worst day since July.
- Over 100 lawsuits have been filed against Milei, with an Argentine judge launching an investigation.
- Milei’s administration opened an internal probe to assess potential misconduct.
Insider Disputes and Industry Reaction
Hayden Davis, CEO of Kelsier Ventures, which facilitated the token launch, disputed Milei’s defense, alleging collaboration between Milei’s team and the project organizers. However, Davis stated he believed Milei was unaware of the token’s manipulation.
Milei Focuses on International Relations
Despite the crisis, Milei plans to meet U.S. President Donald Trump in Washington to seek U.S. support for IMF funding and possible tariff exemptions.
The Libra token scandal poses Milei’s greatest political test since taking office, but his ability to manage the crisis while securing international support could prove pivotal to Argentina’s economic recovery.