Nikolas Sargeant
Argentina's President Javier Milei has finally broken his silence on the cryptocurrency controversy that has engulfed his administration. In a candid interview with Todo Noticias, Milei confirmed meeting with the Libra meme coin creators while staunchly defending his social media involvement as merely sharing information about entrepreneurial opportunities, rather than investment advice.
"I'm not an expert. My specialty is economic growth, with and without money," Milei explained, describing himself as a technology enthusiast who saw potential in supporting Argentine entrepreneurs through cryptocurrency platforms. However, this explanation has done little to quell the growing political storm, as the president now faces fraud charges and impeachment threats from his opponents.
The controversy ignited when Milei's endorsement of Libra on social media triggered a remarkable market surge, briefly pushing the token's value to a $4.5 billion market cap. The subsequent deletion of his post led to a devastating price collapse, drawing accusations of a "rug pull" scheme that left numerous investors with significant losses.
Political Fallout and Investigation
Adding fuel to the fire, Hayden Davis of Kelsier Ventures has publicly accused Milei's team of abruptly withdrawing promised support. Davis claims the president's team had explicitly assured project leaders of their backing before unexpectedly changing course, directly contributing to the market collapse.
In response to mounting pressure, Milei has requested an investigation by the executive branch's anti-corruption office while attempting to minimize the scale of investor losses. He contests reports of 44,000 affected investors, suggesting the number is closer to 5,000, primarily from China and the United States. "The chances of there being Argentinians involved are very slim," Milei stated, characterizing the affected parties as sophisticated traders who understood the risks.
While describing the incident as a "slap in the face," Milei maintains his intentions were genuine: "I'm a techno-optimist, and this was proposed to me as an instrument to help fund Argentine projects." As investigations continue, the incident has highlighted the complex intersection of political leadership and cryptocurrency promotion, raising questions about the responsibilities of public figures in the digital asset space.
