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3mo ago

Argentine President Javier Milei Faces Legal and Political Fallout Over $Libra Cryptocurrency Scandal

Milei's promotion of the now-collapsed $Libra memecoin has led to accusations of fraud, impeachment threats, and questions about his administration's ties to key figures behind the project.

People sit in a restaurant as Argentina's President Javier Milei is seen on television during an interview, in Buenos Aires, Argentina, February 17, 2025. REUTERS/Pedro Lazaro Fernandez/File Photo
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Overview

  • President Milei endorsed $Libra, a Solana-based cryptocurrency, which surged to a $4 billion valuation before crashing by over 80%, leaving many investors with significant losses.
  • Milei deleted his promotional post, claiming he was unaware of the project's details and stating that crypto investments are inherently risky, likening them to a 'casino.'
  • Legal complaints in both Argentina and the U.S. accuse Milei and the companies behind $Libra of fraud and violating securities laws, with potential ties to his inner circle under scrutiny.
  • Key figures involved in $Libra include Julian Peh, Hayden Davis, Mauricio Novelli, and Manuel Godoy, with allegations of financial influence over Milei's administration emerging.
  • The political repercussions include impeachment motions, criticism from allies and opposition figures, and a damaged public image of Milei as a financial expert.