Argentine President Javier Milei is facing renewed scrutiny over the LIBRA token collapse after The New York Times reported that prosecutors obtained phone records showing he spoke seven times with a businessman on the same night he promoted the token. The calls took place both before and after his post, directly challenging Milei’s public claim that he had no connection to the project.
LIBRA surged, then crashed more than 96%
The controversy dates back to February 2025, when Milei posted on X in support of LIBRA, saying the token could help Argentina’s economy by funding small businesses and startups. The token rallied sharply after the post, then collapsed by more than 96% from its peak. Investor losses were estimated at $251 million. Milei later deleted the post, and criticism quickly turned to whether the episode resembled a rug pull.
Argentine lawyers later filed fraud complaints against Milei, while opposition figures called for impeachment. Under Argentine law, fraud can carry a prison sentence ranging from one month to six years.
His “no connection” defense is under pressure
Milei has denied involvement in the project’s operations. He said he was merely promoting a private initiative and stated publicly that he was clearly unrelated to it. The existence of the seven calls has made that defense harder to sustain. For now, the contents of those calls remain unknown, and The New York Times did not identify the businessman involved.
A draft tied to a possible $5 million agreement also surfaced
The phone records are not the only evidence to emerge. In March, investigators examining the phone of crypto lobbyist Mauricio Novelli found a draft document referring to a possible $5 million agreement dated three days before Milei promoted LIBRA. The document did not clearly identify who would receive the money.
Argentina’s Anti-Corruption Office cleared Milei last June on public ethics grounds, ruling that the post was made in a personal capacity rather than as president. The federal criminal case is still active. Milei remains listed as a person of interest in the ongoing investigation.