President Javier Milei is facing accusations of promoting the $Libra cryptocurrency, which surged by 1,300% after his post on X and crashed, leaving many people with significant losses. The accusations come from the opposition lawmakers, who are now preparing for the impeachment process in Congress.
Meanwhile, Milei is bypassing the Senate — where his libertarian coalition holds only 7 of the 72 seats — and temporarily appointing two new judges to Argentina’s Supreme Court, which is set to review the case files. The Court “cannot carry out its normal role with only three judges,” the president’s office stated.
Although these appointments are temporary, the opposition raised questions about the reliability of federal judge Ariel Lijo, who was previously accused of illicit enrichment.
Section 14 of the Argentine Constitution states “All the inhabitants of the Nation are entitled… to publish their ideas through the press without previous censorship.” However, the issue is more complex than it seems, as the line between freedom of speech and censorship is often difficult to define.
Argentina’s fintech chamber, a nonprofit industry association representing the interests of fintech companies in Argentina, acknowledged that the case could potentially be a “rug pull,” meaning the sudden 40 times drop in $Libra’s market capitalization.
Milei denied any personal gain from $Libra and said: “I did not promote it. What I did was I spread it.” Avoiding the games of meanings of what to consider ‘promoting’ and what ‘spreading,’ the fact remains that his post had an impact and foreseen actions followed.
While his Argentinian colleague battles the opposition, President Trump — who faced similar criticism for his own meme coin, $Trump, which quickly surged and then dropped — has reaffirmed his full support for crypto. “Bitcoin has set multiple all-time record highs because everyone knows I’m committed to making America the crypto capital,” Trump stated.
Interestingly, it had little to no effect on Bitcoin’s price or the US Dollar Index, while gold continued its rise toward $3,000.
Despite the ongoing tensions between politicians and the media, it’s unlikely that faith in crypto is diminishing, even if some claim it is a scam. Cryptocurrencies are known for being highly volatile, with meme coins in particular, offering the highest profits and risks. It is hard to argue that investing in such assets guarantees at least a break-even return.
For several years, Elon Musk has been accused of explicitly supporting DOGE, but no prosecution followed despite DOGE’s meme-based origins and highly volatile nature. Today, it’s a well-established cryptocurrency accepted by Microsoft, Tesla, and Twitch.
*Cryptocurrencies are highly volatile and risky. Always consult your financial advisor before investing in any of them, especially in meme coins. DYOR, and never follow the hype.