Argentine Judge to Investigate President Milei Over Cryptocurrency Scandal:

An Argentine federal judge has been assigned to investigate President Javier Milei’s involvement in promoting a cryptocurrency that later crashed, marking the latest controversy that could slow the libertarian leader’s political momentum.

Milei’s Promotion and the Cryptocurrency Collapse

The controversy began on Friday night, when Milei endorsed a little-known cryptocurrency, $LIBRA, in a post on X (formerly Twitter). His endorsement triggered a brief price surge, but shortly after, he deleted the post and distanced himself from the cryptocurrency as its value plummeted.

The Argentine Fintech Chamber has raised concerns that the case might involve a “rug pull” scam—a fraudulent scheme where promoters hype up a cryptocurrency, inflate its value by attracting investors, then cash out, leaving others with worthless tokens.

Legal and Political Fallout

More than 100 complaints have reportedly been filed in Argentina’s judiciary and even in U.S. courts, prompting an official probe. The case has now been randomly assigned to Federal Judge María Servini, a veteran in Argentina’s judicial system.

Opposition lawmakers have seized on the scandal, suggesting that Milei could face impeachment over his actions. The impact was also felt in the financial markets, as Argentina’s benchmark S&P Merval index dropped 5.6% following the controversy.

Fraud Allegations and Lawsuits

A local NGO, Observatorio del Derecho a la Ciudad, has filed a lawsuit accusing Milei and government officials of illicit association, fraud, and breach of public duty.

“We accuse Milei of being part of an illicit association that organized a scam with the $LIBRA cryptocurrency, affecting more than 40,000 people with a collective loss exceeding $4 billion,” the NGO stated on its website.

Milei’s Defense and Government Response

A government source, speaking anonymously, suggested that Milei himself was the victim of fraud rather than an active participant in a scam.

“The only person who was cheated is Milei. He frequently promotes private projects and will continue to do so.”

Milei’s administration has aggressively pursued market deregulation, eliminating bureaucratic hurdles, and promoting free-market policies. His government’s economic stance has been widely praised by investors, particularly for efforts to curb Argentina’s inflation crisis.

The Role of the Meteora Exchange

The $LIBRA token was launched on the crypto exchange Meteora, which previously introduced the $Trump meme coin in January—a cryptocurrency that surged and crashed, causing 200,000 investors to suffer losses.

Meteora’s co-founder, Ben Chow, denied any direct involvement in launching $LIBRA, stating that the firm never had access to the tokens or connections to Milei. He later clarified that Meteora only provided IT support, including verifying the token’s authenticity after its public launch.

Potential Political Consequences

While analysts believe the opposition lacks the votes to push through impeachment proceedings, the ongoing investigation could undermine Milei’s political momentum ahead of midterm elections later this year, potentially providing the opposition with an advantage.

The scandal has polarized public opinion, with some investors voicing outrage, claiming they were scammed by their own president, while Milei’s supporters argue that he is the target of a politically motivated attack.

Milei himself took to X on Friday, aggressively pushing back against critics:

“This only strengthens our resolve to kick them in the ass.”

As the legal probe unfolds, the controversy is set to remain a major political flashpoint, testing Milei’s leadership and his ambitious economic reform agenda.