Javier Milei investigated for cryptocurrency-related fraud in Argentina

Argentina is facing a major scandal involving cryptocurrencies, known as "Cryptogate." The controversy centers on Javier Milei, who is under investigation for fraud related to the $LIBRA cryptocurrency. This digital coin attracted many investors but crashed soon after, resulting in significant financial losses. In February 2025, Milei promoted $LIBRA on social media. His support caused its value to skyrocket, drawing in thousands of investors. However, just days later, the cryptocurrency collapsed, leading to ongoing investigations in both Argentina and the United States. A class-action lawsuit has been filed in New York against those linked to this scheme. Meanwhile, opposition leaders in Argentina are calling for Milei’s impeachment. Another cryptocurrency, $ARG, was found to have been created shortly after $LIBRA launched. Reports indicate that the wallet responsible for $ARG received funds from an exchange known for anonymous transactions, drawing more suspicion. Both tokens were issued in the same quantity of one billion units, raising questions about potential market manipulation before their declines. The implications of these revelations have severely hurt Milei's credibility, distracting from his economic plans. Argentina's struggling economy is now at risk. The government is seeking to stabilize the situation by negotiating a new loan with the International Monetary Fund (IMF) to strengthen reserves. Congress has approved this, but concerns about transparency remain among economists and lawmakers.