Key Takeaways:
- Federal judge María Servini orders disclosure of Milei’s and his sister’s bank records.
- LIBRA token collapsed 99% hours after launch, costing investors millions.
- Co-founders’ assets frozen; evidence suggests payments to Milei’s sister for promotions.
- Milei denies wrongdoing, claims he endorsed LIBRA as a “tech enthusiast.”
Argentina’s Presidential Crypto Scandal Erupts
Argentine President Javier Milei, a self-proclaimed Bitcoin advocate, is embroiled in a deepening cryptocurrency scandal. Federal judge María Servini has compelled the Central Bank of Argentina to disclose Milei’s financial records, probing potential links to the LIBRA token, a project that crashed 99% within hours of its February 2025 launch, erasing millions in investor funds.
The citation was made by lawyer Nicolás Oszust, who represents some 25 victims, Argentine and overseas. The total scam is estimated at $4.5 million.
The LIBRA Debacle: From Hype to Collapse
LIBRA, marketed as an investment for funding Argentinian startups, garnered attention after Milei praised it during a tech conference. However, blockchain data shows the token plummeted 90% in price within hours. Investors allege the project was a “rug pull,” with forensic analysts tracing millions of dollars to offshore wallets post-crash.
This wasn’t volatility, it was a coordinated dump. Promoters exited before retail could react, as shown, at this point, in many on-chain investigations like the Bubblemaps one:
Legal Repercussions: Banking Secrecy Lifted
Judge Servini’s order breaches Argentina’s strict banking secrecy laws, a rare move signaling the case’s severity. Key developments include:
- Frozen Assets: LIBRA co-founders’ properties and accounts seized.
- Video Evidence: Footage allegedly shows a co-founder’s family emptying safe deposit boxes post-crash.
- Alleged Payments: Leaked emails suggest LIBRA’s team paid Milei’s sister, Karina, for social media promotions.
Milei, who skipped a May 15 court hearing, not even his lawyers appeared, insists he had no financial stake.
Political Irony: Bitcoin Bull in a Stablecoin Storm
The scandal strikes a bitter note for Milei, who deregulated crypto markets in December 2024 and praised Bitcoin as “currency salvation.” Opposition lawmakers now demand hearings, with Socialist deputy Alma Pérez arguing, “How can we trust a president whose circle profits from crypto chaos?”
Global Implications for Crypto Regulation
With the G20 coming in November this year, the case could influence global crypto policy. The country’s Securities and Exchange Commission (SEC)-equivalent, Comisión Nacional de Valores (CNV), is drafting stricter token launch rules, including mandatory liquidity locks and founder Know Your Customer (KYC) checks.
Summing Up
Servini’s team has 30 days to review the Mileis’ financial data. If evidence links them to LIBRA’s collapse, Argentina’s Congress could initiate impeachment proceedings, a first for a crypto-related scandal.
On the other hand, most people assume that nothing is going to happen with this case and it will be forgotten soon. Milei’s party just won the legislative elections in Buenos Aires, slapping major traditional parties, consolidating its controversial mandate.
Will this case become a cautionary tale for politicians endorsing crypto projects, or a footnote in Milei’s disruptive agenda? With more Bitcoin ETFs on the way, the stakes extend beyond one token’s failure.
