Lawmaker Pushes Second ‘$LIBRA’ Token – Claims Hack After Backlash

The ‘Cryptogate’ controversy involving Argentine President Javier Milei has taken another turn. Only weeks after Milei’s incendiary social media post endorsing the $LIBRA cryptocurrency resulted in widespread outrage, a party member of his, José Luis Espert, has been involved in a similar controversy. This time, though, the endorsement post for a second iteration of the token, $LIBRA V2, was reportedly the result of a hacking attack. The scandal has heightened criticism of Milei’s government and questioned the legitimacy of the scandalous cryptocurrency.

Alleged Hacking Incident

On Thursday night, Espert’s top advisor, Jimena Aristizábal, confirmed that the lawmaker’s X account had been hacked. According to Aristizábal, Espert did not know the post promoting $LIBRA V2 and was unaware that it had been shared from his account. The post claimed that $LIBRA V2 would stimulate Argentina’s economy by supporting entrepreneurs and small businesses with transparent and decentralized financing. It also suggested that the project was backed by President Milei’s broader economic agenda.

The post stated, “The liberal revolution is underway in Argentina! We are releasing $LIBRA V2, a project committed to stimulating the Argentine economy, favouring entrepreneurs and SMEs with decentralized and transparent private funding.” The message ended with, “Argentina has a bright future @JMilei and together we will achieve it.”

Espert promptly dealt with the issue, posting an apology on the same platform. He said, “I regret to inform you that my account was hacked. The last messages and posts are not mine, and I apologise to anyone who might have been confused or misunderstood by these evil deeds.” He promised his followers that he was working to regain control of his account and ensure that such incidents did not occur in the future.

Milei’s Initial Promotion and Fallout

The controversy arose from President Milei’s connection to the original $LIBRA token. A few weeks prior, Milei had promoted the cryptocurrency on social media, describing it as a platform for innovation and private investment in Argentina. Following Milei’s recommendation, the value of the token surged, only to immediately plummet shortly thereafter, causing many investors severe losses. The situation quickly drew backlash and claims that Milei’s recommendation had “misled” the public about the crypto. Milei’s post also raised regulatory issues over the government endorsing private cryptocurrencies. Critics argued that Milei’s endorsement indicated government support of a high-risk and speculative financial product. The $LIBRA token’s rapid rise and fall have since been referred to as a “pump-and-dump,” where early investors profited while later investors lost money.

Conclusion

The ‘Cryptogate’ scandal pervades the Milei administration. The supposed hacking by Espert has further tarnished the legitimacy of the $LIBRA project and the government sponsorship of it. While Argentina navigates high levels of economic uncertainty, the political ramifications of this controversy could extend beyond the Milei administration and impact Argentine financial markets.