Argentinian President Javier Milei finds himself at the center of a growing scandal after an overnight cryptocurrency meltdown. Over the course of just a few hours, the so-called “Viva La Libertad Project” lost billions in market value, raising questions about Milei’s involvement and the project’s legitimacy.
Late last week, Milei took to social media promoting “Viva La Libertad”—a private endeavor that claimed it would revitalize Argentina’s struggling economy by funding small businesses and startups with a new token known as Libra. The project, launched on the Solana blockchain, promised rapid transactions, low fees, and a supposed mission to spark local economic growth.
Yet only hours after Milei’s post, Libra’s market capitalization soared to an estimated $4.5 billion before plummeting by more than four billion in rapid succession.
Evidence soon emerged suggesting that a handful of large holders held outsized control over the token’s liquidity. Data analytics firm Bubblemaps reported that $87.4 million worth of Libra was cashed out shortly after the token’s launch, often through one-sided liquidity pools that removed stablecoins and Solana from the trading ecosystem.
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Critics note several red flags, including a hastily created website—registered through GoDaddy mere hours before going live—and the absence of public information about token allocations or governance. Libra’s own site directed would-be recipients of “small business funding” to fill out a basic online form.
The token’s initial traction was fueled by Milei’s public posts, which were soon echoed by other Argentinian politicians. But once insiders began withdrawing liquidity en masse, Libra’s price careened downward, prompting widespread accusations of a “rug pull.”
Milei quickly claimed ignorance, stating that he had no detailed knowledge of the project and that his social media endorsements were based on limited information. Opposition leaders, unconvinced, immediately threatened impeachment proceedings for what they have labeled an egregious misuse of the president’s influence.
Argentina’s federal authorities have also launched an investigation to determine how so many investors suffered substantial losses in such a short span of time.
This follows previous cautionary tales—such as President Donald Trump and Melania Trump’s controversial memecoin launches—as evidence that hype-driven crypto releases risk inflicting heavy losses on retail participants. This intensifying scrutiny at home also comes as Milei prepares for a high-profile trip to the US.
Information for this story was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
