Rug pulls are nothing new in the crypto space, but when a sitting president is linked to a memecoin scandal, the situation takes on an entirely different dimension. Argentine President Javier Milei has found himself at the center of controversy after endorsing the $LIBRA token, a move that led to a staggering wealth transfer worth hundreds of millions of dollars. Investors who bought into the hype soon saw the token lose 95% of its value, raising serious questions about Milei’s involvement. Now, Argentine lawyer Agustin Drombola has filed a legal complaint against the president and those behind $LIBRA, citing fraud, abuse of power, and market manipulation. The unfolding scandal has sparked debates about one of the most politically charged crypto collapses in history.
Milei first introduced $LIBRA to the public through a post on X (formerly Twitter), describing it as a private initiative aimed at financing small businesses and startups in Argentina. His endorsement sparked a frenzy, as investors rushed to buy the token, believing it had the backing of the country's highest authority. Initially, $LIBRA’s price skyrocketed, fueled by excitement and speculation. However, it wasn’t long before cracks in the project began to appear.
Behind the scenes, a well-orchestrated scheme was unfolding. Shortly after the token’s launch, on-chain data revealed that a handful of insider wallets controlled approximately 82% of $LIBRA’s supply. As prices surged, these insiders cashed out, collectively dumping over $107 million worth of tokens onto the market. This triggered a catastrophic collapse, wiping out nearly all of $LIBRA’s value and leaving retail investors with massive losses.
As the token spiraled downward, Milei attempted to distance himself from the project. He deleted his initial post promoting $LIBRA and later claimed that he had been unaware of its details. However, his actions raised more questions than they answered. Even after removing his original tweet, he proceeded to share another post titled “How to Buy LIBRA Token?” This contradiction fueled speculation about his true level of involvement.
The scandal has not only shaken Argentina but also sent ripples through global crypto markets. If proven, Milei’s role in the alleged fraud could set a precedent for how crypto-related political scandals are handled worldwide. Legal expert Agustin Drombola’s complaint against the president and $LIBRA’s creators underscores the severity of the situation. The allegations of market manipulation and abuse of public office have turned this case into a potential landmark moment for regulatory discussions in the crypto space.
The $LIBRA debacle serves as a stark reminder of how easily financial markets can be manipulated, particularly when high-profile figures are involved. Whether Milei was an active participant in the scheme or merely an unwitting promoter remains a matter of debate, but the damage has already been done. For crypto investors, this serves as yet another warning to always conduct thorough research before diving into projects especially when politicians are involved. This time, the rug pull may not have been the work of just another crypto project but of a sitting president himself.