18-2-2025 – Argentine President Javier Milei has sought to distance himself from the controversial LIBRA token debacle, insisting he merely “spread the word” rather than actively promoted the failed cryptocurrency that has sparked legal challenges and calls for his impeachment.
In his first public comments since the scandal erupted, dubbed “Libragate” by local media, Milei told Todo Noticias television that whilst he acted in “good faith”, he acknowledges there are “lessons to be learned” about establishing proper boundaries for his conduct.
The Libertad project’s LIBRA token on the Solana blockchain briefly achieved a $4.56 billion market capitalisation on 14 February after Milei posted about it on social media platform X. However, its value plummeted 94% after he deleted the post, triggering accusations of market manipulation.
Defending his position, the libertarian president dismissed suggestions of widespread investor losses, claiming most token holders were automated bots rather than real people. “At most 5,000 people were involved, with very remote chances of any being Argentine citizens,” he stated.
The controversy has highlighted tensions between Milei’s crypto-friendly stance and his presidential responsibilities. While maintaining he has “nothing to hide”, he conceded meetings with KIP Protocol representatives last October, though he denies detailed knowledge of the token project.
KIP Protocol, a Web3 company, has separately denied creating the token or acting as market maker, stating they were merely contracted as technical consultants to assist with fund distribution to Argentine businesses.
María Fernanda Juppet, who heads Argentine crypto exchange CryptoMKT, suggests the scandal is unlikely to impact cryptocurrency adoption in Argentina. “This has sparked political discussion rather than technology rejection,” she noted, pointing to Argentines’ continued preference for dollar-linked digital currencies amid ongoing economic challenges.