On February 14^th, 2025, Argentinian president Javier Milei enthusiastically promoted the cryptocurrency $Libra, promising it would raise money for small businesses and strengthen the Argentine economy. Following the promotion, the price of the meme coin spiked, and the token’s market value reached 4 billion dollars. However, a few hours after launch, early coin-holders started cashing out of the project and its price collapsed, causing estimated losses totaling $251 million. Milei then deleted the evidence of promotional content from his social media. The scandal has been denounced as a “rug pull” scam and dubbed Cryptogate. A federal prosecutor has now opened an investigation against Milei, who denies any responsibility. This scandal points to cryptocurrencies’ risks and uncertainty for the general population and highlights the need for proper legislation to safeguard people’s economic rights.

Milei’s first post read, “The world wants to invest in Argentina,” and offered a code to buy a new cryptocurrency. $Libra was created by American company Kelsier Ventures as part of a project called “Viva La Libertad ” and launched by a small start-up in Singapore, KIP Protocol. Hours after the collapse of $Libra, KIP’s account posted, clarifying that “President Milei was not and is not involved in the development of this project, as he has mentioned himself. This is an entirely private enterprise.” Minutes later, President Milei deleted his initial post and disowned $Libra through X, “I obviously have no connection whatsoever. I was not aware of the project’s details,” he posted. However, as more and more ties between Kelsier Ventures CEO Hayden Davis and the Argentinian president have emerged, opposition lawmakers have announced they will pursue impeachment proceedings over the alleged “crypto-fraud.” In response, Milei ordered the Anti-Corruption Bureau to determine whether any member of the national government, including himself, had misbehaved and set up the “Unit for Investigation Tasks” within the Presidency to investigate the project. The scandal caused the government to lose credibility and power; a key political ally, former president Mauricio Macri, called Milei “careless” and said he had “damaged the country’s credibility.” Milei continued his unapologetic stance and stated in an interview that he had little sympathy for the scam’s victims, “if you go to a casino and lose money, what’s your complaint?” he said. “They knew very well the risks.”

Cryptogate is more than a financial scandal; it is a human rights issue that exposes citizens’ vulnerabilities in an unregulated financial system. Economic security is a fundamental right recognized in international human rights law, and Milei’s promotion of an unstable financial scheme raises serious ethical and legal concerns. The fallout from the scam disproportionately impacted lower-income investors, highlighting the state’s failure to protect its citizens from economic exploitation. The Universal Declaration of Human Rights (UDHR) Article 25 recognizes the right to an adequate standard of living, which includes financial security. Furthermore, The Inter-American Court of Human Rights (IACHR) has previously ruled that governments have a duty to prevent financial harm when they can reasonably anticipate risks. Article 31.3. of the Interamerican Convention of Human Rights similarly states that “Usury and any other form of exploitation of man by man shall be prohibited by law.” When people lose their savings due to financial fraud, especially when enabled by a public official, it threatens their ability to afford basic needs like food, housing, and healthcare, and thus can be considered a Human Rights violation. The Argentine government must prevent financial harm to its citizens, yet Milei’s actions actively contributed to it. As many investors in $Libra were small business owners, retirees, and working-class citizens looking for ways to protect their savings from inflation, the loss of $251 million from ordinary investors can be analyzed through a human rights framework. Milei’s government must thus be held accountable for violating the right to economic security, as well as for corruption and fraud.

Cryptogate comes at a difficult point for Argentina’s economy, as many Argentinians already struggle with inflation and poverty, and fraudulent financial schemes thus exacerbate economic precarity. At the time of Milei’s inauguration in December 2023, Argentina’s economy suffered 211 percent annual inflation, the currency had plunged, and four out of 10 Argentines were in poverty. Some argue that Milei has improved the Argentine economy, as the annual inflation rate, which was 211% in 2023, is expected to be below 30% in 2025. However, these figures may only show one side of the coin and exclude the lived experience of many Argentinians. The current president, a self-described anarcho-capitalist, has adopted a neoliberal policy agenda, slashing spending, eliminating government ministries, and firing hundreds of bureaucrats. According to AlJazeera, Milei has reduced government spending by 30% in the last year. However, these figures have come at a high cost for the most disadvantaged; pensions and public salaries were held down, unemployment increased, and public infrastructure projects were scrapped. In the first half of 2024, poverty surged from 40 to 53 percent in 2023, nearly seven in 10 Argentinian children are growing up poor and the disinflationary dynamics have not had much bearing on the quality of life of families or the purchasing power of workers. In this context, Milei’s Cryptogate scandal is all the more outrageous, as it targets his own vulnerable and impoverished constituency for personal gain.

Cryptogate is thus a stark reminder of the dangers posed by unregulated financial markets and the consequences of political figures promoting speculative assets without accountability. More than just a financial scandal, it underscores a fundamental violation of economic rights, disproportionately harming Argentina’s most vulnerable citizens. In a country already grappling with severe inflation, widespread poverty, and economic instability, losing $251 million to a fraudulent scheme exacerbates existing inequalities and erodes public trust in government institutions. Milei’s dismissal of the victim’s losses as a personal gamble reflects a broader disregard for the state’s responsibility to protect citizens from financial exploitation. His administration’s role in legitimizing $Libra—through direct involvement or reckless endorsement—raises serious ethical and legal concerns. As the investigation unfolds, Argentina must strengthen regulatory frameworks to prevent future financial fraud and ensure that leaders cannot use their influence to promote unverified financial schemes.

Ultimately, Cryptogate is not just about a failed cryptocurrency; it is about the intersection of governance, economic rights, and accountability. If Milei and his government escape responsibility for this scandal, it sets a dangerous precedent for future financial misconduct. Argentina’s fight for economic justice must go beyond this single case, ensuring that financial policies serve the people rather than exploit them.