Argentine President Javier Milei Declares the Collapse of Memecoin LIBRA as 'A Private Matter'

Argentine President Javier Milei has denied supporting the controversial cryptocurrency LIBRA, a project that has caused significant losses to investors. In an interview on February 17, Milei addressed the situation, stating that he did not actively promote the token but only shared information about it. He affirmed that he acted in good faith and had nothing to hide. He said: "I do not promote it, I share it...I acted in good faith and was influenced." The LIBRA token, built on Solana, skyrocketed to a market capitalization of 4.56 billion dollars on February 14 after Milei posted about it on the social media platform X. However, the token's value plummeted by 95% within a few hours when he deleted his post and distanced himself from the project. Later, it was reported that the founders of LIBRA were involved in insider trading and price manipulation, leading to allegations of misconduct. Milei explained that he was introduced to this project as a funding mechanism for entrepreneurs facing difficulties in securing financial support due to informal business structures. He stated that he only shares detailed information about this initiative with his audience rather than actively endorsing it. He added: Any initiative that improves the financial situation for tech entrepreneurs interests me. I have made no mistakes because I have acted in good faith. Investor losses and political consequences The president emphasized that the Argentine government is not involved in the LIBRA project and only a few domestic investors are affected. Milei asserts: “Does the government lose money? No. Do Argentinians lose money? Perhaps four or five people at most. Most investors are Chinese and American.” Milei also notes that those investing in LIBRA are experienced, volatile traders who understand the risks. He frames this issue as a privacy matter between individuals voluntarily participating in a speculative financial instrument. He said: “These are individuals with high professional qualifications in this type of financial tool. Participants are very aware of the risks—they are volatile traders. This is a private matter between individuals and they participate voluntarily.” In addition to financial losses, this dispute also causes political instability for Milei. As a result, he had to face legal scrutiny and calls for impeachment, while critics accused him of damaging investor confidence and tarnishing Argentina's financial reputation. Milei acknowledges that this incident has forced him to reconsider his communication with the public, he said: When I look at the political consequences, I realize that there is something I need to learn. I need to understand that after becoming president, I still act like Javier Milei before. Unfortunately, this situation shows me that I need to improve my filter and not make myself so accessible.