A year after Argentine President Javier Milei voiced support for the Libra meme coin, the project has proven to be a rug pull that rattled investors around the world. In Argentina, 212 investors are pursuing asset recovery, and data from local exchange Ripio shows that 1,329 citizens were financially harmed on a single platform. The incident’s reach extended beyond Argentina to countries such as Bosnia, Lebanon, and Australia, underscoring a global impact.
Alfonso Gambao Silvestre, a 25-year-old trader from Chile, exemplifies the personal toll. He lost $10,000 after the token’s abrupt rise and fall, having invested a total of $5,000 across two purchases. Despite the price decline, he continued buying, and as the price collapsed, he began withdrawing only after it was too late, ultimately losing twice his initial investment and leaving the crypto space for good. He now participates in the Argentina lawsuit along with hundreds of other investors.
A separate U.S. class action targets Hayden Davis, CEO of Kelsier Ventures, identified as the project’s architect. Milei’s public stance on Libra has shifted over the past year, with critics arguing that the former president has not provided consistent answers about his role. Statements have varied from calling Libra a casino to asserting a right to publish his views, and at times claiming he was not serving as president at the time of certain tweets. Lawmakers like Massimiliano Ferraro say key questions remain unanswered, including who approached the president and how a private, non-public smart contract address longer than 40 characters was shared.
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