Milei denies LIBRA promotion, blames market volatility for scandal

President Milei denies promoting LIBRA, calling the scandal a harsh lesson, and claims most investors were experienced traders from the U.S. and China.

President Milei Denies Promoting LIBRA, Blames Scandal on Market Volatility

In a recent interview with an Argentine news outlet, President Javier Milei denied actively promoting LIBRA, insisting he only shared information about the project in good faith. He stated that he believed it could benefit Argentine entrepreneurs and dismissed allegations of misleading investors.

Milei described the LIBRA incident as a wake-up call, saying it prompted him to rethink his accessibility as president. As a result, he plans to implement stricter screening for those seeking direct access to him. He also claimed that very few Argentinians were financially affected, asserting that most investors were from the U.S. and China and were experienced traders familiar with high-risk markets.

Speaking publicly about the LIBRA meme coin for the first time since the controversy erupted, Milei sat down with national news channel Todo Noticias. He clarified that while he shared information about the project, he did not endorse it.

Milei recalled meeting Hayden Davis, the CEO of LIBRA’s market maker, at the Tech Forum in October 2024. Davis, who later claimed to be an advisor to Milei on the project, reportedly met with the president on multiple occasions. On February 14, Milei posted about LIBRA on social media, shortly after the token’s launch, driving its market cap beyond $4 billion. However, a sudden sell-off by insiders caused a steep collapse, leading to accusations of a rug pull and prompting Milei to delete his post.

Defending his actions, Milei said: “I shared it as I do with many technological advancements. My tweet was posted just minutes after the coin was created because I was interested in it. These were volatility traders who understood the risks.”

During the interview, Milei appeared composed and reiterated that he had nothing to hide. When asked why he had publicly posted about the token, he responded, “I didn’t promote it, I shared it.” He acknowledged the backlash, calling it “a harsh lesson” but stopped short of labeling it a mistake.

Milei also emphasized that moving forward, he and his sister, Karina Milei, who serves as the presidency’s Secretary General, will carefully filter who gains direct access to them.

The president explained that his initial interest in LIBRA stemmed from a belief that it could provide a funding alternative for Argentine startups, particularly those lacking access to traditional financial markets. When speculation arose that his account had been hacked, Milei pinned his tweet to confirm he was in control. Later, after facing criticism, he decided to remove it.

Most notably, he insisted that Argentinians were not significantly impacted by the LIBRA collapse, stating that most affected investors were American and Chinese. “Did the state lose money? No. Did Argentinians? Maybe four or five people at most. The majority were foreign investors,” he claimed.

Although reports suggest that around 40,000 people traded LIBRA, Milei disputes this number, saying only about 5,000 investors were involved. He also denied misleading participants, arguing that those who joined the market were skilled in speculative trading and aware of potential losses.

Despite admitting he is not a cryptocurrency expert, Milei spoke about his ties to Hayden Davis. Davis, the head of Kelsier Ventures—the main entity behind LIBRA—had reportedly met with the president at least ten times, including visits to Casa Rosada, the presidential office, and the official residence. According to Milei, Davis had suggested creating a structure to finance entrepreneurial projects in Argentina.

“Davis proposed a framework to support Argentine startups,” Milei said, explaining why he found the idea appealing. He added that his enthusiasm for technology led him to share the project publicly as soon as it launched.

Since the LIBRA fallout on February 14, over 100 criminal complaints have been filed against Milei and other figures allegedly linked to the scandal. Opposition lawmakers have even suggested pursuing an impeachment. Meanwhile, U.S. prosecutors are reviewing whether they have jurisdiction over the case, given that Davis is an American citizen who openly admitted to certain actions in interviews.

The day after LIBRA’s launch, Milei voluntarily appeared before Argentina’s Office of Anti-Corruption, asking for an investigation into whether any government members—including himself—had engaged in wrongdoing.

During his interview, Milei firmly denied accepting bribes in connection to LIBRA. He refrained from commenting in detail on Davis’s role in the situation but reiterated his stance that Argentina’s judicial system must conduct its own investigation. He added that, as far as he knows, none of his cabinet members were involved.

Milei also pointed out that all cryptocurrency transactions are recorded on the blockchain, stating that this transparency should allow authorities to quickly determine whether any wrongdoing occurred.

The president concluded by reassuring the Argentine people that he had always acted in good faith and would continue to do so.