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Argentina has found itself at the center of a high-profile scandal related to the $Libra cryptocurrency, which was promoted by the country's President Javier Miley on February 14. On the evening of Valentine's Day, he tweeted: "The world wants to invest in Argentina," accompanied by a code for purchasing the new digital coin. However, a few hours after the launch of $Libra, its value plummeted, and investors lost a total of about $250 million. The largest holders managed to sell their assets at the peak of the price, leaving the rest of the participants with losses.
The cryptocurrency community immediately called the situation a classic "rug-pull" scheme - when a celebrity advertises a new token, the price of which quickly grows, and then the founders sell their shares, sharply collapsing the value. In Argentina, the scandal acquired a political tint: the opposition accused Miley of fraud, demanded his impeachment, and citizens filed several criminal complaints. The federal prosecutor opened an investigation, where the president is one of the suspects.
In response to the accusations, Miley said that he did not receive a cent from the launch of $Libra and blamed the Singaporean startup KIP Protocol for what happened. However, further investigations revealed Miley's ties to the key organizers of the project. Last October, a crypto conference was held in Buenos Aires, organized by Argentine businessman Mauricio Novelli, close to Miley. At the event, for $50,000, one could not only speak, but also take a photo with the president. And for an additional fee, there was the opportunity to personally meet with the head of state.
Among the conference participants was American crypto consultant Hayden Davis, who claimed to have "control" over Miley and could organize profitable deals. In July and November 2024, Novelli and Davis visited the presidential residence Casa Rosada, where they were received by Miley's sister and chief of staff, Karina Miley. In January 2025, the president himself published a photo with Davis, introducing him as his advisor on blockchain technologies.
On February 13, Novelli contacted KIP Protocol founder Julian Pei and proposed launching a cryptocurrency called $Libra, supposedly to support small businesses in Argentina. However, the very next day after the price collapse, the president quickly disowned the coin and deleted his promotional tweet. Soon, Milei's administration released a statement calling $Libra a "KIP Protocol project" and shifting all responsibility to Pei.
Analysis of transactions showed that 80% of all $Libra tokens belonged to the launch organizers and were sold immediately after the start of trading. As a result, approximately 86% of investors lost a total of $251 million. The accounts registered a few hours before the coin's launch received the greatest profit.
Meanwhile, Davis issued a series of public statements calling himself Milei’s adviser and accusing his entourage of trying to shift the blame. He acknowledged making $100 million in the scheme but did not say whose money it was or whether he planned to return it. The only known case of a refund was a $5 million settlement for Barstool Sports founder Dave Portnoy, who had invested in $Libra but lost all his money.
In Argentina, the scandal had serious repercussions. The country’s stock indices sank, and influential politician and former President Mauricio Macri called Milei “irresponsible.” The media dubbed the case “Cryptogate,” and federal authorities launched an official investigation, including an investigation into Karin Milei’s activities. According to Argentine media reports, Davis allegedly claimed in correspondence with third parties that he “controlled” the president by transferring money to his sister.
Miley himself continues to deny his involvement in the scandal and points to the risks of the cryptocurrency market. “If you go to a casino and lose money, what are you complaining about?” he said in an interview. Despite the escalating crisis, the president has already expressed interest in holding a new crypto conference in Argentina.
The cryptocurrency community immediately called the situation a classic "rug-pull" scheme - when a celebrity advertises a new token, the price of which quickly grows, and then the founders sell their shares, sharply collapsing the value. In Argentina, the scandal acquired a political tint: the opposition accused Miley of fraud, demanded his impeachment, and citizens filed several criminal complaints. The federal prosecutor opened an investigation, where the president is one of the suspects.
In response to the accusations, Miley said that he did not receive a cent from the launch of $Libra and blamed the Singaporean startup KIP Protocol for what happened. However, further investigations revealed Miley's ties to the key organizers of the project. Last October, a crypto conference was held in Buenos Aires, organized by Argentine businessman Mauricio Novelli, close to Miley. At the event, for $50,000, one could not only speak, but also take a photo with the president. And for an additional fee, there was the opportunity to personally meet with the head of state.
Among the conference participants was American crypto consultant Hayden Davis, who claimed to have "control" over Miley and could organize profitable deals. In July and November 2024, Novelli and Davis visited the presidential residence Casa Rosada, where they were received by Miley's sister and chief of staff, Karina Miley. In January 2025, the president himself published a photo with Davis, introducing him as his advisor on blockchain technologies.
On February 13, Novelli contacted KIP Protocol founder Julian Pei and proposed launching a cryptocurrency called $Libra, supposedly to support small businesses in Argentina. However, the very next day after the price collapse, the president quickly disowned the coin and deleted his promotional tweet. Soon, Milei's administration released a statement calling $Libra a "KIP Protocol project" and shifting all responsibility to Pei.
Analysis of transactions showed that 80% of all $Libra tokens belonged to the launch organizers and were sold immediately after the start of trading. As a result, approximately 86% of investors lost a total of $251 million. The accounts registered a few hours before the coin's launch received the greatest profit.
Meanwhile, Davis issued a series of public statements calling himself Milei’s adviser and accusing his entourage of trying to shift the blame. He acknowledged making $100 million in the scheme but did not say whose money it was or whether he planned to return it. The only known case of a refund was a $5 million settlement for Barstool Sports founder Dave Portnoy, who had invested in $Libra but lost all his money.
In Argentina, the scandal had serious repercussions. The country’s stock indices sank, and influential politician and former President Mauricio Macri called Milei “irresponsible.” The media dubbed the case “Cryptogate,” and federal authorities launched an official investigation, including an investigation into Karin Milei’s activities. According to Argentine media reports, Davis allegedly claimed in correspondence with third parties that he “controlled” the president by transferring money to his sister.
Miley himself continues to deny his involvement in the scandal and points to the risks of the cryptocurrency market. “If you go to a casino and lose money, what are you complaining about?” he said in an interview. Despite the escalating crisis, the president has already expressed interest in holding a new crypto conference in Argentina.
