Argentine President Javier Milei has dismissed claims that he endorsed the LIBRA memecoin, which recently saw a dramatic pump and dump, leaving investors with heavy losses.
As reported by tier10k on X, Milei stated that he only shared information about the token and never encouraged people to invest in it. He downplayed the impact on Argentina, saying that only a handful of local investors — around four or five —were affected. He noted that most of the traders involved were from China and the U.S.
Contrary to reports that 44,000 investors were affected, Milei stated that the real number was closer to 5,000, most of whom were experienced traders who understood the risks. According to him, the LIBRA issue was a private financial matter rather than something involving the government.
Milei also clarified that Hayden Davis, one of the figures behind LIBRA, had proposed creating a financing structure for entrepreneurs who struggle to secure funding due to informal economic conditions. He saw the initiative as something positive and simply helped spread the word.
Despite defending his actions, Milei acknowledged the political backlash and the lessons he has learned from the controversy.
“I made no mistakes because I acted in good faith. But 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.”
Argentine President Javier Milei
LIBRA gained huge attention after Milei mentioned it publicly, which contributed to its rapid price surge from zero to over $4. Its value quickly plummeted to less than 50 cents leading to speculations of market manipulation. Early investors reportedly cashed out over $100 million, leaving later purchases with significant losses.
Political tensions have increased in Argentina as a result of the incident, and opposition leaders are calling for Milei to be removed from office for allegedly deceiving the people. The nation’s anti-corruption office is currently conducting a separate inquiry in addition to a legal probe headed by Federal Judge María Servini.
The S&P Merval stock index fell by about 5% as a result of the scandal, which also rocked Argentina’s financial markets. Even though Milei insists he did nothing wrong, the debate is still going strong and his administration is coming under more scrutiny.