The $LIBRA crypto scandal with Argentina's President Javier Milei: And a little chainsaw skit with US President Musk

Argentina’s authoritarian hyper-“libertarian” President Javier Milei has a crpytocurrency scandal swirling around his head:

Javier Milei’s aura has lost its shine. A post on X, the platform where the Argentine president wages his “cultural battle” and feels most comfortable, was enough to spark a political crisis, the worst in 14 months of the populist’s far-right government. Last Friday, Milei recommended investing in $Libra, a new cryptocurrency that he presented as part of a project to finance small entrepreneurs. $Libra shot up in minutes to reach a global value of $4 billion. While everything appeared like great business, the scam was consummated. Those few who had bought seconds before Milei’s post at a bargain price fled with their profits and left a trail of victims. Milei then deleted his message, arguing that he had not “informed” himself enough about the matter. Pandora’s box was then opened.

The $Libra scandal is growing and its political consequences are difficult to predict. The impeachment motion has little chance of success, because the Kirchnerist opposition will hardly get the two-thirds of the votes it needs to push it through. But the crisis has opened deep fissures in the heart of the government and the heterogeneous block that its political allies make up. (1)

The BBC has a brief video report on the scandal: (2)

Yanis Varoufalkis also has a comment on the scandal and an economically literate description of cryptocurrency (English with Spanish subtitles), whose “embed” function doesn’t seem to work on Substack. (3)

Cryptocurrency has proven its practical uses for black-market transactions and for pump-and-dump investment scams. Maybe someday someone will come up with some other practical, non-criminal use for it. (4)

But US President Musk is a fan of Milei. In fact, they just appeared on stage together:

Billionaire Elon Musk began his appearance at the Conservative Political Action Conference brandishing a chainsaw that was gifted to him by Argentine President Javier Milei. The chainsaw was used by the Argentine leader during campaign to symbolize his proposals to shred the bloated state. Milei came on stage to pass the power tool on to Musk. (5)

And, yes, there is a Texas Chainsaw Massacre vibe this whole thing with Milei and Musk. Milei’s nickname is El Loco.

According the Argentine government statistics, Milei’s libertarian miracle economics succeeded in raising Argentina’s poverty rate to 53% at one point last year. (6)

Notes:

(1) $Libra cryptocurrency scandal lands Javier Milei in the worst crisis of his presidency. El País 02/19/2025. <https://english.elpais.com/economy-and-business/2025-02-19/libra-cryptocurrency-scandal-lands-javier-milei-in-the-worst-crisis-of-his-presidency.html> (Accessed: 2024-21-02).

Argentina federal judge to probe Milei crypto scandal. Reuters YouTube channel 02/1//20024. <https://youtu.be/8GVEF7cxO6o?si=-uWLC2iEz5uneaHH> (Accessed: 2024-21-02).

(2) Argentina's President Javier Milei denies crypto fraud allegations. BBC News YouTube channel 02/19/2025. https://youtu.be/sGQ0EBibJN8?si=PWTcPKAKaPh7SII1 (Accessed: 2024-21-02).

(3) Daily Motion/Página/12 (2025): Una estafa, un crimen político": Varoufakis explicó el caso $LIBRA y apuntó a Milei 19.02.2025. "<https://dai.ly/x9epcl6> (Accessed: 2024-21-02).

Varoufakis sobre $Libra: "Cuando lo hace el presidente del país, es más que una estafa, es un delito político". Página/12 02/19/2025. <https://www.pagina12.com.ar/805164-varoufakis-sobre-libra-cuando-lo-hace-el-presidente-del-pais> (Accessed: 2024-21-02).

(4) Tasca, Elkisa (2025): From Trump to Milei: Presidential memecoins roil the crypto market. El País 02/18/2025. <https://english.elpais.com/economy-and-business/2025-02-18/from-trump-to-milei-presidential-memecoins-roil-the-crypto-market.html> (Accessed: 2024-21-02).

(5) Elon Musk waves chainsaw on stage at CPAC. Associated Press YouTube channel 02/21/2025. <https://youtu.be/nkMVb0RNptA?si=w1KneQwEOqyUG0us> (Accessed: 2024-21-02).

Rascouët-Paz, What We Know About Musk's Ketamine Use. Yahoo! News/Snopes 01/15/2025. <https://www.yahoo.com/news/know-musks-ketamine-120000781.html> (Accessed: 2024-21-02).

(6) Barber, Harriet (2024): Poverty in Argentina soars to over 50% as Milei’s austerity measures hit hard. The Guardian 09/27/2024. <https://www.theguardian.com/world/2024/sep/27/poverty-rate-argentina-milei> (Accessed: 2024-21-02).