LIBRA Scandal
The president of Argentina promoted a meme coin. It was a $4.5 billion rug pull.
Date
2025-02-14
Impact
bearish
On Valentine's Day 2025, Argentine President Javier Milei posted on X promoting a token called $LIBRA, describing it as a project to fund small Argentine businesses. LIBRA's market cap surged to $4.5 billion within minutes. Then insiders — who controlled 70% of supply — dumped. The price crashed 85% within hours. Over $251 million in investor losses followed. Milei deleted his posts. An investigation revealed that Hayden Davis, the American behind the token, had met with Milei at the presidential palace and allegedly arranged a $5 million payment deal for the endorsement. Forensic evidence showed Milei and the promoters exchanged messages at the exact moment of launch. The scandal — dubbed "Cryptogate" — triggered calls for impeachment, congressional investigations, and tanked Milei's approval ratings to historic lows. It became the biggest political-crypto scandal in history.