Argentina and Cryptocurrencies: Unfulfilled Promises and New Controversies

In February 2025, Milei promoted the cryptocurrency $LIBRA on his social media platforms. His endorsement triggered a rapid surge in the asset’s value, attracting thousands of investors. However, just days later, the token crashed, resulting in massive losses.

This incident, dubbed “Cryptogate,” has sparked investigations in Argentina and the United States. A class-action lawsuit has been filed in New York against those responsible for the scheme, and Argentina’s opposition has called for Milei’s impeachment. Fraud and illicit association charges are under review in Argentine courts.

The Discovery of $ARG: A Suspicious Pattern?

A recent report revealed that another cryptocurrency, $ARG, was created minutes after $LIBRA’s launch. Investigations show that the wallet that issued $ARG received funds from FixedFloat, an exchange that allows anonymous transactions—just like the wallets behind $LIBRA and $MILEI.

Moreover, $ARG was issued in the same quantity as $LIBRA: one billion units. These identical patterns suggest a possible connection between the three tokens, raising suspicions of a deliberate market manipulation strategy aimed at profiting before the cryptocurrencies’ collapse.

Impact on the Economy and Politics

The $LIBRA scandal and the revelation of $ARG have severely damaged Milei’s credibility, shifting focus away from his economic reforms. The lack of concrete progress in closing the BCRA and the uncertainty created by these cases have weakened market confidence.

The government is now seeking to stabilize the situation by negotiating a new loan with the International Monetary Fund (IMF) to bolster BCRA reserves and lift foreign exchange restrictions. Congress approved the authorization for these negotiations, but a lack of transparency has raised concerns among economists and lawmakers.