Argentina’s President Javier Milei has denied endorsing the controversial LIBRA memecoin, a project that triggered massive investor losses.
In a Feb. 17 interview, Milei addressed the situation, stating that he did not actively promote the token but merely shared information about it. He maintained that he acted in good faith and had nothing to hide.
He said:
“I didn’t promote it, I shared it…I acted in good faith and took a hit.”
The LIBRA token, built on Solana, surged to a $4.56 billion market cap on Feb. 14 after Milei posted about it on social media platform X. However, the token’s value collapsed by 95% within hours when he deleted his post and distanced himself from the project.
Reports later surfaced that LIBRA’s creators were involved in insider trading and price manipulation, fueling accusations of misconduct.
Milei explained that he was introduced to the project as a funding mechanism for entrepreneurs who struggle to secure financial support due to informal business structures. He claimed he merely shared details about the initiative with his audience rather than actively endorsing it.
He added:
“Any initiative that improves financing for tech entrepreneurs interests me. I made no mistakes because I acted in good faith.”
Investor losses and political fallout
The president stressed that Argentina’s government was not connected to the LIBRA project and that only a handful of local investors were affected.
Milei asserted:
“Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most. The vast majority of investors are Chinese and American.”
Milei further noted that those who invested in LIBRA were seasoned volatility traders who understood the risks. He framed the issue as a private matter between individuals who willingly participated in a speculative financial instrument.
He said:
“These are highly specialized individuals in this type of financial instrument. Those who got involved knew the risks very well—they are volatility traders. This is a private matter between individuals, and they participated voluntarily.”
Beyond financial losses, the controversy has ignited political turmoil for Milei.
The fallout has resulted in legal scrutiny and calls for his impeachment, with critics accusing him of damaging investor confidence and tarnishing Argentina’s financial credibility.
Milei acknowledged that the incident has forced him to reconsider how he engages with the public, saying:
“When I look at the political repercussions, I realize I have something to learn. I need to understand that after becoming president, I continued acting like the same Javier Milei as before. Unfortunately, this situation shows me that I need to raise my filters and not make myself so accessible.”
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