Last Friday, Javier Milei, Argentina’s libertarian president, took to X/Twitter to advocate for $Libra, a newly launched cryptocurrency. He claimed that it would serve as a catalyst for economic development and support small businesses and entrepreneurship in Argentina. The digital currency experienced a swift surge in value, buoyed by backing from the global crypto community and his dedicated supporters. However, within just a few hours of Milei’s announcement, the coin plummeted to near worthlessness. The creators of $Libra withdrew their investments, with an estimated $100 million pulled out, resulting in substantial gains for insiders and devastating losses for many of Milei’s fervent followers.
### A Parallel to Previous Crypto Ventures
The situation faced by $Libra investors closely resembles that of those who recently backed $Hawk, a cryptocurrency associated with the “Hawk Tuah girl.” The significant distinction, however, lies in $Libra being tied to a prominent political figure, specifically the president of a country boasting the twenty-fourth largest GDP globally. Milei’s revered status among right-wing online communities led many supporters to view the currency as a secure investment aligned with his political ideology. Reports indicate that some loyal followers were left financially devastated after investing in this ill-fated venture.
### Political Fallout and Legal Actions
The repercussions of this apparent scam are still unfolding, but it is evident that Milei’s support has dwindled in the wake of the controversy. Lawsuits are being initiated both in Argentina and the United States. Political figures across the Argentine ideological spectrum are voicing their disapproval on X, with former right-wing president Mauricio Macri distancing himself from Milei. Opposition groups, including Trotskyists and Peronists, have called for impeachment proceedings, while centrist factions are advocating for a parliamentary inquiry into the incident. This situation represents a significant political challenge for Milei, who had previously enjoyed widespread backing since taking office in December 2023.
### Milei’s Defense and Controversies
Maintaining a low profile on social media for several days, Milei finally addressed the nation in a recorded interview with Todo Noticias, a channel sympathetic to his policies. Rather than expressing remorse, he insisted he had no reason to apologize, claiming he merely shared information about $Libra and likening it to a presidential visit to a business. He asserted that he acted from his personal account, distancing himself from any state involvement and arguing that investors should have understood the risks, quipping, “If you go to the casino, you lose money. What’s the complaint?”
### Scandalous Revelations and Political Maneuvering
Shortly after the interview, a video surfaced featuring one of Milei’s advisers interrupting the discussion when the interviewer pressed for clarification regarding the distinction between his personal and presidential accounts. In a moment that raised eyebrows regarding journalistic integrity, the interviewer apologized, suggesting that the inquiry might lead to legal consequences for Milei. The situation escalated further when Hayden Davis, a developer behind the cryptocurrency, claimed to have bribed Karina Milei, the president’s sister and chief of staff, to secure Milei’s endorsement for the coin. In messages filled with derogatory language, Davis asserted that he held significant influence over Milei, indicating a troubling power dynamic.
### Implications for the Latin American Right
As the political landscape shifts, it remains uncertain whether the opposition can effectively leverage this scandal to undermine Milei’s political standing. Currently, Milei is avoiding the media spotlight while his party has succeeded in quashing an initial investigation into the matter. The scandal has prompted a period of introspection among right-wing factions throughout Latin America. The previously incessant flow of social media commentary and opinion pieces lauding Milei as a role model for the Right has abruptly ceased, with various parties opting for silence. In neighboring Chile, the Right has chosen to remain muted, while in Brazil, the focus is predominantly on the coup allegations against former president Jair Bolsonaro amid their own cryptocurrency controversies.
### Shift in Political Dynamics
In Colombia, the Right’s leading candidate for the 2026 presidential race, Vicky Dávila, initially sought to distance herself from Milei, citing her long-standing skepticism of the cryptocurrency sector. However, following the unfolding scandal, she has intensified her praise for Milei’s approach, further complicating the political narrative. It is crucial to recognize that Dávila has engaged campaign advisors with connections to Milei and a network of right-wing and libertarian think tanks in the region. The implications of this scandal may pose a significant risk to Milei’s political model, potentially affecting various elections scheduled for this year and the next.
### A Duality of Support and Controversy
Contrasting with the hesitance displayed by Latin American right-wing factions, the U.S. right has not shown similar reservations regarding Milei. Recently, Elon Musk was spotted alongside Milei at the Conservative Political Action Conference (CPAC), brandishing a chainsaw—a symbolic gift representing Milei’s cuts to state programs such as pensions and public education. The bond between these two figures is not surprising; Musk has lauded Milei since 2023, playing a pivotal role in elevating him within U.S. media circles. Musk’s refusal to distance himself from Milei amidst allegations of bribery and fraudulent activities serves as a stark indication that the U.S. right prioritizes austerity over principles of integrity or accountability.
### The Broader Implications of Austerity Politics
The evolving narrative surrounding Milei’s credibility, both domestically and internationally, highlights the larger implications of austerity-driven politics championed by the anarcho-capitalist president and his followers. As these dynamics unfold, the prospect arises that Milei’s political model could ultimately be viewed as a significant liability for the right across Latin America, framing the entire far-right political agenda as a potentially deceptive scheme akin to a cryptocurrency scam.
