Argentina’s $LIBRA crypto scandal, dubbed “Cryptogate,” erupted after President Javier Milei promoted the meme coin on X on February 14, 2025, briefly sending its value soaring before it collapsed and left investors facing heavy losses. The episode triggered investigations in Argentina and the United States and prompted accusations that the project was a classic “rug pull” scheme.
What happened
Milei posted multiple endorsements of the token, including its contract address, and described it as a way to support small Argentine businesses. After the promotion, $LIBRA’s market value surged to more than $4.6billion before plunging by more than 80% within hours, as insiders and founders reportedly sold their holdings.
The crash is estimated to have caused about $251million in losses across more than 114,000 wallets, while a small number of launch-linked accounts allegedly made roughly $87million. The scandal quickly became a test of how far a sitting president can be tied to a crypto promotion gone wrong.
Who was involved
The token was launched by Kelsier Ventures, a Delaware-registered company led by Hayden Davis, who later said he made about $113million from the project. Davis also defended the use of “sniping”, which he described as part of an “insider’s game” in an unregulated market.
Mauricio Novelli, an Argentine associate with prior ties to Milei, also came under scrutiny. He had known Milei for years, worked with him professionally, and was reportedly involved in organizing the launch and facilitating access to the president.
Milei’s response
Milei deleted his post hours later and said he had not known the details of the project, insisting he had acted in a personal capacity rather than as president. He also compared the investment to gambling.
Authorities later froze Davis’s assets in Argentina, and prosecutors sought an Interpol Red Notice for him in March 2025. He also became a defendant in a class-action lawsuit in New York.
Investigations and fallout
The scandal prompted impeachment talk from opposition lawmakers, who moved to pursue proceedings for alleged misconduct and fraud. Although Argentina’s Anti-Corruption Office cleared Milei in June 2025, ruling that he had acted as an economist in a personal capacity, that finding was later challenged.
On November 19, 2025, a 200-page congressional report contradicted the anti-corruption ruling and said Milei had provided “essential collaboration” to the scheme. It also pointed to earlier episodes in which he promoted other crypto projects that later collapsed or were accused of fraud.
Why it mattered
The $LIBRA affair became more than a crypto disaster. It raised questions about political endorsement, investor protection and the use of presidential influence in a market already known for volatility and weak oversight.
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