Argentina’s libertarian president, Javier Milei, was supposed to be a champion of economic revival and free-market principles. Instead, he’s now at the center of a crypto scandal that wiped out billions. His endorsement of the LIBRA token, which turned out to be a textbook rug pull, has left thousands of Argentines in financial ruin and raised serious questions about his judgment.
A Presidential Endorsement That Backfired
It all started on Valentine’s Day when Milei, with his 3.8 million followers on X (formerly Twitter), promoted LIBRA, calling it a “private project” aimed at boosting the Argentine economy. He included a link, a Solana contract address, and a token cash tag—effectively encouraging his supporters to buy in.
They did. LIBRA’s market capitalization skyrocketed to $4.56 billion within minutes. But the celebration didn’t last long.
By 10:38 PM, Milei backtracked, tweeting that he had “obviously no connection” to LIBRA and that he had deleted his post after learning more about it. But the damage was done. LIBRA plummeted by 97%, wiping out millions from retail investors who had trusted the president’s word.
Who Got Rich, Who Got Wrecked?
Of the 44,000 wallets that bought LIBRA, the vast majority—around 74%—lost money, according to blockchain analysis. Most of these losses ranged from a few dollars to six-figure sums.
Only a tiny fraction—about 0.18% of wallets—made more than $100,000. The real winners were the insiders.
- Eight wallets linked to the LIBRA team withdrew their initial liquidity and trading fees, pocketing $107 million.
- Bots set up by insider wallets bought LIBRA at rock-bottom prices the second Milei tweeted, then dumped their holdings as the price surged.
- One wallet bought $1 million worth of LIBRA at $0.38 and cashed out at $8 million within minutes.
It wasn’t just retail investors who were misled. Influencers, too, were roped into the promotion. Dave Portnoy, founder of Barstool Sports, revealed he was given 6 million LIBRA tokens in exchange for promotion—though he later returned them.
A Scam Disguised as Economic Growth
This wasn’t just another meme coin gamble. Unlike DOGE or PEPE, which are mostly internet jokes, LIBRA was marketed as an investment that would support Argentine businesses and education.
Even worse, it had the implicit backing of a sitting president. That credibility made people believe it was a legitimate project. Instead, LIBRA’s creators rug-pulled within hours, leaving retail investors as exit liquidity for a handful of insiders.
Milei’s involvement turned a typical crypto scam into a political crisis. Former President Cristina Fernández de Kirchner accused him of running a Ponzi scheme. Lawmakers have called for an investigation. And when Argentina’s markets opened on Monday, the Merval stock index plunged by more than 5%.
A Crypto-Friendly President Who Backed the Wrong People
Milei’s association with crypto wasn’t new. Many believed his libertarian stance made him a natural ally to the crypto community. Argentina, after all, has been a crypto hub for years, with major companies like Decentraland, Ripio, and RSK Labs emerging from the country.
But instead of engaging with established crypto players, Milei lent his platform to unknown entities—KIP Protocol and Kelsier Ventures.
- KIP Protocol, founded in 2019, claimed to “unlock digital property rights in AI.”
- Kelsier Ventures, founded in 2021, was led by CEO Hayden Davis.
Neither had any real track record in crypto. Yet, they somehow gained direct access to Milei, securing his endorsement of their token.
Who Let the Scammers In?
Milei doesn’t operate in a vacuum. He has advisors and gatekeepers, and three key figures played a role in his crypto dealings:
- Mauricio Novelli: Longtime Milei associate and founder of NW Professional Traders.
- Demian Reidel: Chairman of Milei’s Council of Advisors.
- Karina Milei: The president’s sister and General Secretary.
KIP and Kelsier’s access to Milei can be traced through them.
- In October 2023, Milei met Julian Peh of KIP at a tech conference organized by Novelli.
- In January 2024, Hayden Davis met Milei at Casa Rosada, where KIP introduced him as a partner.
- Before that, in July 2023, Davis had already met with Milei’s sister, Karina.
That’s all it took. A few meetings, some vague talk about blockchain-powered economic revival, and LIBRA got the presidential seal of approval.
The Fallout and the Blame Game
Now, everyone involved is scrambling to avoid responsibility.
- Hayden Davis released a bizarre video claiming he would “inject everything back into the LIBRA chart,” effectively admitting he pulled the liquidity.
- KIP Protocol denied involvement, saying Davis launched the token independently.
- Milei’s office launched an investigation and deflected blame onto Argentina’s previous government.
But the facts are clear: Milei promoted a scam, and his supporters paid the price.
Instead of supporting legitimate crypto businesses in Argentina, he aligned himself with unknown entities and foreign actors. Instead of exercising due diligence, he jumped on a project with no track record.
This wasn’t just a case of bad luck—it was incompetence, fueled by greed and a reckless embrace of anything that looked vaguely libertarian.
What Comes Next?
Crypto scams are nothing new. But LIBRA stands out because of the scale of the deception and the involvement of a sitting head of state.
Argentina is still waiting for Milei to take real responsibility. An apology won’t fix things, but at the very least, he owes it to his supporters to acknowledge that he misled them.
If he wants to prove he’s serious about economic reform and free markets, he should start by engaging with real builders—not hustlers looking for a quick payday.
Until then, this scandal will hang over his presidency, a reminder that in the rush for economic revival, there’s a fine line between ambition and recklessness.
