Argentina’s Newest Crypto Scandal Reflects President Milei’s Worrying Attitude to Gambling
Argentina’s President Javier Milei is facing substantial public backlash after he promoted the cryptocurrency $LIBRA on social media. Milei tweeted on X (formerly Twitter) on 14 February, praising the token and stating it would fund small businesses and Argentine startups. Thousands of investors jumped in within an hour, taking the price from $0.21 to a peak of $5.54 before it crashed entirely.
Miei Adamantly Defended His Actions
These rapid market fluctuations caused most investors to lose their money. Milei, seemingly attempting to distance himself from this debacle, deleted his post without explanation. However, this strategy didn’t work, as by 17 February, he faced over 100 criminal complaints, with Argentina’s opposition party calling for his impeachment. Milei dismissed investor complaints, stating that individuals who bought $LIBRA did so at their own risk.
It’s like playing Russian roulette and taking the bullet.
Javier Milei
The Argentine President also justified deleting his post, commenting that he had not fully grasped the project’s specifics. He added that learning more about $LIBRA caused him to stop promoting it. He showed little sympathy for people who lost their money, repeatedly comparing the losses to gambling at a casino.
If you go to a casino and lose money, what’s there to complain about when you know the risks?
Javier Milei
This incident closely follows another similar crypto controversy, where US President Trump’s meme coin similarly drew overwhelming interest before suddenly crashing and costing investors roughly $2 billion. Unlike in the US, the Argentine scandal raised serious legal and ethical concerns, and the court must determine whether Milei should face fraud charges.
Argentina Struggles with Fragmented Regulations
Milei’s comments have been universally criticized as callous, particularly in light of Argentina’s ongoing issue with problem gambling. The nation is grappling with alarming gambling trends, particularly among minors and young adults. Reports in 2024 by public health and education officials revealed that an alarming 34% of minors had bypassed age verification systems to gamble online.
Unlike most countries, Argentina regulates gambling at the provincial level, leading to lopsided enforcement and a lack of uniform consumer protections. The patchwork regime has elicited calls for federal intervention, and legislators are mulling a new national bill to replace provincial gambling laws with a uniform federal regulatory regime.
The $LIBRA crypto fiasco and the worsening gambling harm crisis share a common theme: the need for enhanced consumer protections in Argentina. The question remains whether Milei and his administration will take accountability or if these problems persist and inch ever closer to spiraling out of control.
