Argentina’s President Javier Milei is facing mounting legal pressure after the collapse of the Libra token, a cryptocurrency that rapidly lost its value following claims of his endorsement. In his first public statement since the controversy erupted, Milei denied actively promoting the token, insisting that he merely "spread the word" about it.

“I did not promote that. What I did, I spread the word,” Milei stated during a Feb. 17 interview, addressing the scandal that local media have dubbed “Libragate.” His remarks come as multiple fraud suits and calls for impeachment have surfaced in response to the token’s collapse.

The Libra token (LIBRA) had initially surged in popularity following apparent links to Milei, with many investors believing it had the backing of the country’s libertarian leader. 

The token’s price skyrocketed after viral social media posts and promotional content suggested Milei’s support. However, within hours, it became clear that Libra was not an official project tied to the government, leading to a steep price crash and accusations of a “rug pull.”

The fallout from the scandal has been swift. Several lawsuits have been filed against those behind Libra, while opposition lawmakers are using the incident to push for Milei’s impeachment. Critics argue that his social media activity contributed to the misleading hype around the token, even if he did not explicitly endorse it as an investment.

Read more: $4.6B to $200M: How $LIBRA became the fastest crypto collapse

Milei’s past engagements with crypto have added fuel to the controversy. During his presidential campaign, he frequently criticized traditional banking systems and praised Bitcoin, positioning himself as a pro-crypto leader. His party, La Libertad Avanza, has advocated for deregulation and free-market policies, further aligning with the broader crypto movement.

However, this latest scandal has cast a shadow over his administration. Argentina regulators have already launched an investigation into the Libra token’s creators, and authorities are reviewing whether any fraudulent activity was involved in its sudden rise and collapse.

The incident has not only damaged Milei’s political standing but has also deepened skepticism toward memecoins and speculative altcoins. Many investors who rushed to buy Libra lost significant sums when the token’s value plummeted. The scandal has prompted discussions about the need for stronger regulations in Argentina’s crypto space, even among Milei’s libertarian supporters.

While Milei maintains that he played no role in promoting Libra, his comments have done little to ease tensions. The president’s attempt to distance himself from the controversy may not be enough to stop the legal and political consequences unfolding in the wake of “Libragate.”

With fraud cases piling up and public trust shaken, Argentina now faces a new crypto controversy that could shape its financial policies in the coming months.

Read more: Argentina’s president faces fraud charges over crypto endorsement