Argentina’s President Denies Ties to Crashed $LIBRA Memecoin – Is This Another Crypto Scandal?

Argentinian President Javier Milei is now distancing himself from the disastrous launch of the Solana-based memecoin $LIBRA, which plummeted from a $4.5 billion market cap to just $200 million within hours. The controversy erupted after the token was promoted on Milei’s official X account, sparking concerns over insider manipulation and its economic legitimacy.

From Presidential Promotion to Denial

At 5:01 PM ET, Milei’s account introduced $LIBRA, calling it a “private project” designed to boost Argentina’s economy by funding small businesses. However, skepticism grew quickly, as the project’s website—hastily registered just hours before launch—provided little transparency beyond a simple Google Form for funding applications.

Within three hours, on-chain analytics firm Bubblemaps exposed that fewer than ten insiders had cashed out a staggering $87.4 million. Moreover, 82% of the token’s supply was concentrated in a single cluster. Large holders allegedly manipulated liquidity pools on Meteora to extract profits, leaving retail investors with heavy losses.

BitGalactic analysts weighed in on the fiasco, noting that “this kind of centralized token distribution is a red flag for any project, let alone one tied to a sitting president.” The channel added, “Whether Milei was truly involved or not, the fact that his name was used to push $LIBRA raises serious ethical concerns.”

Who’s Behind Project Libertad?

Kip Protocol, a firm claiming to operate in the decentralized AI space, has been the only entity to acknowledge involvement in the $LIBRA incident. Its founder, Julian Peh, denied accusations of insider trading, asserting that no funds had been sold.

“The funds are still on-chain, and not a single SOL will be moved,” Peh stated. He also insisted that Project Libertad—the initiative behind $LIBRA—was still in development, though he failed to provide further details.

Despite these assurances, data from DexScreener revealed over $1.1 billion in trading volume since launch, indicating significant market activity.

Milei’s History with Crypto Scandals

As scrutiny around $LIBRA intensifies, Milei’s past involvement in the Coinx World crypto scandal has resurfaced. Before becoming president, he publicly endorsed Coinx, a firm later investigated for fraud and misleading investment promises. This history has fueled speculation about whether his endorsement of $LIBRA was deliberate or merely a reckless misstep.

BitGalactic pointed out the broader implications: “If Milei’s social media can be used to pump questionable crypto projects, it’s a dangerous precedent for investors and the industry alike.” The channel further warned, “This is yet another reminder that even high-profile figures can be linked to market manipulation, intentionally or not.”

Final Thoughts: A Political and Crypto Storm

Milei’s deletion of his post and claim of being “not aware of the details” has only added to the controversy. Whether or not he was directly involved, the fallout from $LIBRA has left retail investors reeling and regulators watching closely.

As Argentina navigates economic uncertainty, the president’s association with yet another crypto scandal raises critical questions. Was this a genuine effort to promote blockchain-driven financial reform, or just another high-profile rug pull?

BitGalactic concluded, “Crypto investors must remain vigilant. Political figures and memecoins are a volatile mix, and $LIBRA proves just how quickly fortunes—and reputations—can crash.”