$SOL The "Milei Meme Coin Controversy" centers on Argentine President Javier Milei's promotion of the cryptocurrency $LIBRA, which led to significant financial and political repercussions.

Promotion and Rapid Collapse of $LIBRA

On February 14, 2025, President Milei endorsed $LIBRA through a post on his social media account, X (formerly Twitter). This endorsement caused the coin's value to surge above $4. However, shortly thereafter, the price plummeted by nearly 94%, falling below 50 cents. This sharp decline resulted in substantial losses for over 40,000 investors. Subsequent investigations revealed that $LIBRA had been created just minutes before Milei's promotion and was heavily concentrated in a few wallets. These wallets profited over $100 million before the coin's value collapsed.

Political and Legal Repercussions

The incident has led to severe political and legal consequences for President Milei. Opposition parties have filed legal complaints, accusing him of fraud and calling for his impeachment. Federal Judge María Servini de Cubría is overseeing the investigation into the alleged scam. In response, Milei has denied any involvement in the coin's development, attributing the losses to the high-risk nature of cryptocurrency investments. He has also requested an anti-corruption investigation to identify any wrongdoing.

Market Impact

The controversy has significantly impacted Argentina's financial markets. The S&P Merval, the country's main stock index, experienced a nearly 4% drop, with an initial decline of almost 6%.