Argentine President Javier Milei is under scorching political fire after promoting the Libra token, a Solana-based cryptocurrency that proved to be a huge financial disaster. The token, which Milei hyped on X (formerly Twitter), skyrocketed in value before plummeting more than 94% in a matter of hours. With insider trading allegations and increasing demands for impeachment, the scandal has shaken Argentina’s political and financial establishment.
The Memecoin Bubble Is Bursting
— Conrad Zen (@askconradzen) February 27, 2025
The wild speculation around memecoins is collapsing, leaving investors with massive losses. Trump Token, which once surged by 800%, has crashed over 80% from its peak. Similarly, Libra, a memecoin promoted by Argentine President Javier Milei,… pic.twitter.com/3IarkgzkNx
The Success and Decline of the Libra Token
The Libra token debuted on February 14, receiving popularity after the support of Milei. In his now-deleted post, it was presented as a personal endeavor to boost the economy of Argentina, urging the investors to step in. The price jumped phenomenally, once propelling the market cap of Libra temporarily to $4.56 billion.
But within 11 hours, the token fell by more than 94%, dropping to a $257 million market cap. Blockchain analysts later confirmed that insider wallets had sold out more than $107 million, causing the collapse.
Political Fallout and Calls for Charge.
The scandal has set off a political firestorm. Opposition legislator Leandro Santoro denounced Milei in public, calling the episode an “international embarrassment” and calling for his impeachment. Argentina’s fintech chamber also said that the case contains all the red flags and have the clear indications of a rug pull.
Consequently, Milei distanced himself from the wrongdoing, stating he had “no connection whatsoever” to the project and was unaware of its operations. He also accused political rivals of taking advantage of the ordeal for their gain.
Insider Trading and Red Flags
Blockchain analysis company Lookonchain disclosed that at least eight insider wallets that belonged to the Libra group withdrew more than $107 million in crypto tokens in just three hours after the token was released. The transactions involved these assets:
– $57.6 million value of USDC Stablecoin
– 249,671 Solana, worth $49.7 million
Further, blockchain analytics company Bubblemaps had already reported severe problems with the tokenomics of Libra. According to their report, 82% of the entire supply was unlocked and available for trading from day one, which is an excellent red flag for investors.
Milei tried for Damage Control.
In a bid to contain the crisis, Milei has called on Argentina’s Anti-Corruption Office to probe all government officials, including himself, for any wrongdoing. In an official statement, he also sat with officials of KIP Protocol, the company that owns Libra, in October 2024, and again with enigmatic crypto businessman Hayden Mark Davis in January 2025.
All the information that is collected during the investigation will be passed on to the courts so that it can be decided whether or not crimes have been committed,” the statement said.
Javier Milei is at the center of Argentina’s latest political scandal, linked to the Libra rug pull. Although he claims no role, the disappearance of $107 million from investors and accusations of insider trading have fueled demands for his trial in court. As the probe goes on, this case serves as a warning to politicians and investors alike in the unpredictable world of cryptocurrency.
