The scandal erupted on Valentine's Day when Javier Milei, the president of Argentina, tweeted about a new cryptocurrency named $Libra just 23 minutes after its creation. He announced a promotional code for potential investors, which sparked a rapid influx of funds. Investors rushed in, driving the coin's value to new heights.
However, the joy was short-lived. As quickly as the value rose, it crashed, leaving behind a staggering $250 million in losses for the majority of investors. Analysts labeled the event a classic "rug-pull," where early insiders sell off their stakes while later investors are left holding worthless coins.
In response to the situation, public outrage grew, with many critics alleging that President Milei had defrauded his constituents. Calls for impeachment came from opposition parties, as Argentine citizens began filing criminal complaints against him. A federal prosecutor has since launched an investigation, with Milei now under scrutiny.
Amid the unfolding chaos at home, Milei attended the Conservative Political Action Conference in Washington, D.C., where he delivered a bold speech. This puts him in the company of fellow politician Donald Trump, who also faced controversy for promoting his own cryptocurrency, $Trump, which resulted in significant investor losses as well.
As the dust settles on Argentina's $Libra, the implications of this digital coin disaster extend beyond the financial realm, leaving a significant scar on public trust and leading to calls for accountability from leaders.
However, the joy was short-lived. As quickly as the value rose, it crashed, leaving behind a staggering $250 million in losses for the majority of investors. Analysts labeled the event a classic "rug-pull," where early insiders sell off their stakes while later investors are left holding worthless coins.
In response to the situation, public outrage grew, with many critics alleging that President Milei had defrauded his constituents. Calls for impeachment came from opposition parties, as Argentine citizens began filing criminal complaints against him. A federal prosecutor has since launched an investigation, with Milei now under scrutiny.
Amid the unfolding chaos at home, Milei attended the Conservative Political Action Conference in Washington, D.C., where he delivered a bold speech. This puts him in the company of fellow politician Donald Trump, who also faced controversy for promoting his own cryptocurrency, $Trump, which resulted in significant investor losses as well.
As the dust settles on Argentina's $Libra, the implications of this digital coin disaster extend beyond the financial realm, leaving a significant scar on public trust and leading to calls for accountability from leaders.
