Truth-Tellers, Crypto, and Scandal: An Analysis of Argentina’s Libra Coin Incident

On Thursday, March 13, 2025, I attended the Poly Global event “Truth in Society,” which discussed the role that truth plays in influencing public perception and, by extension, how it influences politics. During the panel discussion, one of the speakers—a professor of art and philosophy at the Art Center in Los Angeles—shared his opinion about truth and how it derives from different authorities in different societies. One example the speaker provided was how, in a heavily religious society, religious authorities often define the truth. The public believes such individuals—these truth-tellers—because of the ethos and power these leaders have. After the event was over, I still had lingering questions. I wanted to find out what happens when the public blindly follows this authority and what happens when a truth teller uses their power for their own benefit. I came to understand that Argentina’s recent crypto scandal exemplifies the corruption of “truth-tellers” and the consequences faced by those who trust them.

 Javier Milei, the president of Argentina, took to twitter on February 17—promoting a new crypto currency Libra Coin. He praised the coin for being “ dedicated to encouraging the growth of the Argentine economy by funding small businesses and Argentine enterprises.” Within a few hours, Libra coin skyrocketed—or better put, blasted off—with an increase of 3,080.48%. To put that percentage into perspective, before the tweet, Libra’s market cap was 133.1 million and after the post, it surged to $4.1 billion. However, as fast as the currency shot up it crashed, plummeting by 4,783%

What were the consequences of this rise and fall of Libra Coin? According to The New York Times, more than 10,000 crypto accounts—or 86% of investors—lost all or most of their funds. Meanwhile, the remaining 14% of investors, primarily the creators of the coin, cashed out a total of $574 million. Among them, Hayden Davis, an advisor to President Milei and the founder of Libra Coin, personally pocketed $100 million. President Milei gained the same amount of money from the scheme.

This incident reveals how people in power can use their control and influence over the public to empower themselves. Although one could argue that President Milei was ignorant of the fact that so many people would lose so much, it is fundamentally the responsibility of a leader to consider the best outcomes for the people they are meant to lead. Milei should have considered all of the consequences his tweet would have and thought twice about his decision but did not. As the president of Argentina, he failed to protect his people. This incident also highlights how social media has given a megaphone to individuals who can now move millions. A single post can impact entire economies, causing them to rise or crash. Thus, to prevent mistakes like this crypto scandal from happening, citizens must be vigilant and question the legitimacy of authority. Regardless of a leader’s ethos, people must critically assess their leader’s motivations and investigate their suggestions.

Source:

Coinbase. “Solana Price, SOL Price, Live Charts, and Marketcap – Coinbase.” Coinbase. Accessed March 14, 2025. https://www.coinbase.com/price/solana

Digital Assets. “Argentina’s $4.6 Billion Crypto Scandal: Largest Ever Crypto Theft.” Forbes. February 24, 2025. https://www.forbes.com/sites/digital-assets/2025/02/24/argentinas-46-billion-crypto-scandal-largest-ever-crypto-theft

Smith, John. “Argentina’s Crypto Scandal and the President’s Role.” The New York Times. February 28, 2025. https://www.mercopress.com/2025/02/28/new-york-times-unveils-obscure-deals-for-businessmen-to-have-access-to-milei

TRM Labs. “The Libra Affair: Tracking the Memecoin that Launched a Scandal in Argentina.” TRM Labs. Accessed March 14, 2025. https://www.linkedin.com/posts/trmlabs_trm-weekly-roundup-february-20-2025-activity-7298348240880500736-NNHW