How the LIBRA Scandal is Undermining Milei’s Trust in Argentina

A recent survey has revealed a sharp decline in public confidence in Argentina’s president Javier Milei. 57.6% of respondents now express distrust in the libertarian leader. 

This comes following his involvement in the LIBRA cryptocurrency scandal, which caused millions in investor losses.

Public Trust in Argentine President Javier Milei Plummets 

Zuban Córdoba conducted the survey between March 12 and 14. It included responses from 1,600 respondents, with a confidence level of 95% and a 2.4% margin of error. The findings indicated a growing disillusionment with the government, and negative perceptions appeared to deepen each month.

“The negativity is growing slowly but steadily, with no apparent ceiling. The change in tone and evaluation of the government is consolidating as more problematic issues emerge on the political agenda. One bloodbath after another could be the theme of the last few months,” the report read.

When asked, “More than a month since the crypto scam scandal broke out, how much do you trust Milei today?” only 36% expressed trust in the president, while 6.4% remained undecided.

The results marked a significant blow to Milei’s credibility. His overall image has also suffered, with 58.5% of respondents holding a negative perception of him. In comparison, 41.1% retain a favorable opinion. 

Public approval of his administration mirrored this sentiment, with 58.4% disapproving of his management while 41.6% continuing to support him.

For context, the LIBRA scandal erupted on February 14 when Milei promoted the newly launched cryptocurrency in a now-deleted post on X (formerly Twitter). Within hours, the token’s value soared to a market capitalization of over $4 billion, only to crash by more than 95% as early investors, including alleged insiders, cashed out. 

Blockchain analytics firm Nansen reported that insiders and bots earned $180 million in profits. Meanwhile, 86% of LIBRA investors suffered losses of $251 million. The fallout left thousands of investors, many of them Milei’s own supporters, reeling from financial devastation.

Milei swiftly distanced himself from the project, claiming that he merely spread the word about LIBRA and did not intend to endorse it. However, his explanation did little to quell public outrage or legal scrutiny. 

In fact, many criminal complaints were filed against Milei and associated parties in the aftermath of the event. Argentine authorities also launched a federal investigation into the president’s involvement.

Despite the damage to his reputation, Milei’s La Libertad Avanza party continues to lead in election polls ahead of the October 26 vote. The party has secured 36.7% support, compared to 32.5% for the opposition coalition Unión por la Patria. This shows that while the scandal has hurt Milei’s image, it has not completely dismantled his political movement.