Argentina’s president Javier Milei arrives in Washington amid crypto scandal

Argentina’s president Javier Milei touched down in Washington, D.C., on Thursday, arriving in the middle of the biggest political firestorm of his presidency.

Javier’s visit—scheduled weeks in advance—was originally about securing an International Monetary Fund (IMF) deal and strengthening ties with Donald Trump’s administration. But now, Javier is walking into a different battle: explaining his involvement in a memecoin collapse that erased $4.6 billion in market value overnight.

Javier’s US itinerary is stacked. He’s set to meet Elon Musk, one of his most vocal supporters and a close friend, before delivering a speech at CPAC—the Trump-friendly Conservative Political Action Conference. His team has been scrambling to turn the conversation away from the $LIBRA debacle and back to his economic agenda. But back in Argentina, the scandal isn’t going away.

$LIBRA token collapses after Javier’s promotion

The controversy exploded last Friday when Javier personally endorsed $LIBRA, a newly launched cryptocurrency, in a post on X (formerly Twitter). The token immediately surged, attracting speculators who saw the Argentine president’s backing as a signal to buy in.

But just hours later, the price crashed, wiping out billions. Javier deleted the post, and his office distanced itself from the project, but it was already too late.

Then came Hayden Davis, a key figure behind the token. Hayden told investors that Javier was more involved than he let on, claiming in leaked text messages—published by CoinDesk—that he paid Karina Javier, the president’s sister and closest advisor, to “control” Javier.

Davis denied that he had made any payments to the president or his sister, or sent the messages. Milei denied any wrongdoing in a television interview on Monday.

But the damage was done. The opposition pounced, accusing Javier of either incompetence or outright corruption.

Javier responded on Monday night in an interview on Argentinian television, saying he never received money for the promotion and calling the accusations an attempt to smear his presidency. He didn’t clarify why he initially backed the token or why he deleted the post, leaving more questions than answers.

Market reaction and the IMF talks in Washington

The fallout hit Argentina’s markets hard. The Buenos Aires stock index dropped 6% on Monday before recovering slightly. The country’s already fragile peso took another hit, adding pressure on Javier’s economic team.

Javier’s biggest priority in Washington is securing an IMF deal. His government has been in negotiations for months, trying to unlock new funding and ease Argentina’s currency controls. Economy Minister Luis Caputo said on Monday that the agreement was “almost done”, but sources close to the talks suggest the IMF still has concerns—particularly about Javier’s handling of the peso’s exchange rate.

The IMF has pushed for a more flexible currency policy, but Javier’s team insists on controlling the rate to prevent inflation from spiraling further.

While Javier has been one of Trump’s strongest allies on the global stage, the US president’s new tariff plan could put Argentina in a difficult position. Trump is pushing for reciprocal levies on countries that impose heavy duties on US goods, and Argentina’s protectionist trade policies could make it a target.

Javier is expected to raise concerns about the tariffs when he meets with top US officials this week. His government has been trying to align more closely with Washington, but trade policy could strain the relationship—even as Javier cultivates personal ties with Trump’s inner circle.

Despite the scandal back home, Javier is set to receive a warm welcome at CPAC. The conservative crowd embraces his free-market stance and aggressive anti-establishment rhetoric. Last year, Javier’s speech at the same event went viral among right-wing circles, and his team is betting on another strong reception to help drown out the crypto controversy.

Before CPAC, Javier is scheduled to meet Elon Musk. Musk has been one of his biggest defenders, calling him a “true reformer” and backing his aggressive economic policies. Their meeting is expected to focus on energy, trade, and digital assets. Crypto will almost certainly come up—but whether Musk addresses the $LIBRA debacle remains to be seen.

The crypto community, meanwhile, has been divided over the scandal. One Argentinian X user posted:

“The main thing I can say after $LIBRA incident is that I believe even more in Bitcoin and Ethereum than even before and I’m sure Argentineans will play a crucial role in global crypto adoption. We’re resilient as fuck.”

Ethereum created Vitalik Buterin reacted, saying:

“Argentina’s Ethereum community is full of amazing builders, who have already contributed some of the most important software in the Ethereum ecosystem.”

He suggested that Argentina should host Devconnect, a major Ethereum developer conference, citing the country’s strong crypto talent.

Javier responded publicly:

“THANK YOU VERY MUCH, Vitalik Buterin FOR YOUR WORDS ABOUT ARGENTINE TALENT!!! It would be an honor for Argentina to host Devconnect. LONG LIVE FREEDOM, DAMN IT…!!!”

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