Libra Meme Coin Rug Pull: How Javier Milei’s Endorsement Sparked a Global Crypto Scandal

One year after Argentine President Javier Milei publicly backed the Libra meme coin, the fallout from what many call a massive rug pull continues to shake the crypto community. The controversial token launch triggered a global buying frenzy, ultimately leaving thousands of investors facing significant crypto losses and eroding trust in politically endorsed digital assets.

Among those affected was Alfonso Gamboa Silvestre, a 25-year-old trader from Chile who lost $10,000 when Libra’s price collapsed. On February 14 last year, he saw a Telegram alert claiming that Argentina’s president had launched a cryptocurrency through the “Viva La Libertad Project.” After verifying the post on Milei’s official X account, Gamboa invested $5,000 in two transactions. Within hours, the token’s value plummeted. Like many retail investors caught in the hype, he exited at a steep loss, ultimately doubling his initial investment in damages.

Gamboa had been active in the crypto market since 2016 and became a serious trader in 2022. Early investments in meme coins such as TRUMP and MELANIA had proven profitable, reinforcing his belief that Libra could follow a similar path. Instead, the sudden crash marked his complete exit from the cryptocurrency industry and a loss of confidence in digital asset markets.

Legal consequences are still unfolding. In Argentina, 212 investors have joined a class action lawsuit seeking compensation. Data from local exchange Ripio shows at least 1,329 Argentines suffered losses, contradicting Milei’s claims that only a few were affected. International investors from countries including the United States, Australia, Lebanon, and Bosnia were also impacted. In the US, a separate lawsuit targets Hayden Davis, CEO of Kelsier Ventures, who is accused of orchestrating the project.

As investigations continue, questions remain about Milei’s involvement and how the Libra token was promoted. For many investors, the Libra crypto scandal represents more than financial loss—it symbolizes a lasting breakdown of trust in the volatile world of meme coins and politically fueled cryptocurrency projects.