The LIBRA token scandal, a saga of political promotion and alleged market manipulation that rocked Argentina, has reached a pivotal moment. A congressional investigation has concluded that President Javier Milei played an indispensable role in the scheme, just as millions of dollars linked to the token were suddenly moved, seemingly beyond the reach of authorities.
A Presidential Promotion and a Swift Collapse
The scandal erupted on February 14, 2025, when President Javier Milei used his social media accounts to promote the new $LIBRA token, framing it as a private initiative to boost the Argentine economy. His post included the token’s specific contract address, a detail that was not yet public, which investigators later noted strengthened the hypothesis of a prior link to the creators.
The market reaction was immediate and explosive. The token’s value skyrocketed, briefly reaching a market capitalization of approximately $4.5 billion. However, this peak was short-lived. Within hours, the creators, who controlled about 70% of the total token supply, executed a massive sell-off. The price plummeted by over 90%, collapsing from its peak and wiping out an estimated $251 million from investors in what is commonly known as a “rug pull” scam. On-chain analysis from TRM Labs tracked how funds were systematically drained from the project’s liquidity pool, with about $90 million in crypto assets consolidated into wallets controlled by the team.
The Investigation Points to the Top
After three months of investigation, an Argentine congressional committee presented its final report, placing direct responsibility on President Milei. The report concluded that the president “used the presidential office” and provided “indispensable cooperation” for carrying out an alleged international fraud. It highlighted that $LIBRA was not a legitimate investment instrument but a “memecoin previously designed for a rug pull”.
The investigation detailed that Milei held 16 meetings with key figures behind the token, including American entrepreneur Hayden Davis, the main creator of $LIBRA, and Singaporean businessman Julian Peh. The report also noted that this was not an isolated incident, pointing to a similar scheme in December 2024 involving a digital currency from Peh’s company, KIP Protocol, which the president also promoted.
A Suspicious Finale: The $58 Million Move
As the congressional committee prepared to present its final report on November 19, 2025, a dramatic on-chain event unfolded. Two wallets connected to the case, “Milei CATA” and “Libra: Team Wallet 1”, which had been dormant for nine months, suddenly became active. They liquidated over $58 million in USDC stablecoin and converted it into SOL, the native cryptocurrency of the Solana network.
This move was seen by analysts as a tactical effort to shield the funds from authorities. Unlike USDC, which can be frozen by the issuer, SOL is a decentralized asset that cannot be easily seized. Blockchain researcher Fernando Molina noted, “The first interpretation… is that they did it so that the money cannot be frozen… it may be the last time we see this money visible”. This occurred despite Argentine prosecutors repeatedly seeking freezing orders for these assets since April.
The LIBRA affair serves as a stark lesson on the risks of supply concentration in meme coins and the potent, yet dangerous, impact of political endorsements in the volatile crypto market.
