On Friday evening, President Milei shared a post on his social media account, encouraging his 3.8 million followers to consider investing in $LIBRA, a newly launched cryptocurrency. This endorsement caused the token's value to skyrocket from zero to $4.7, with its market capitalization reaching approximately $4.5 billion. However, shortly thereafter, major stakeholders liquidated their holdings, leading to a sharp decline in the token's value and resulting in significant losses for numerous investors.

In response to the ensuing outcry, Milei removed his initial post and stated that he had not been fully informed about the project's specifics. He emphasized that his intention was merely to support a tool aimed at financing entrepreneurs lacking access to traditional funding avenues. "I didn't promote it; I disseminated it," Milei asserted during an interview with Todo Noticias. He further compared the situation to gambling losses, suggesting that participants were aware of the inherent risks.

The incident has sparked a political firestorm. Members of the opposition have filed legal complaints accusing Milei of fraud and dereliction of duty. Additionally, there are calls for impeachment proceedings, with critics alleging that the president exploited his position to artificially inflate $LIBRA's value for personal or political gain.

In defense, Milei's administration has stated that while the president met with representatives of the companies behind $LIBRA, he was not involved in its development. The government has pledged full cooperation with investigations and has requested the Anti-Corruption Office to examine the matter thoroughly.

Economy Minister Luis Caputo has downplayed the incident, describing it as an "unforced error" on a niche topic. He emphasized that the president had no malicious intent and did not commit any crimes. Caputo also reassured the public that the event would not have broader economic repercussions.

Despite these assurances, the scandal has led to a significant drop in Argentina's stock market, with the benchmark S&P Merval Index experiencing its largest one-day decline since July, falling by 5.6% on Monday. The controversy has also raised questions about the president's judgment and the potential need for stricter protocols regarding presidential endorsements.

As the situation unfolds, the political and legal ramifications for President Milei remain uncertain. The incident has undoubtedly posed a substantial challenge to his administration, testing both his leadership and the public's trust in his decision-making.