The cycle of new crypto aggravates as coins suck the market. Speaking publicly for the first time, Milei has moved away from the market manipulation accusations. He insisted on the fact that his promotion on the social networks of the token was not an approval of the investment but rather an effort to highlight an initiative based on the crypto aimed at supporting Argentinian entrepreneurs.
“I am not an expert in crypto,” Milei told Todo Noticias in an interview on Monday evening. “My expertise is economic growth, with or without money. As a person passionate about technology and their project financing potential, I simply shared the idea. »»
However, its approval – intentional or not – establishes a speculative frenzy. Friday evening, after Milei directed his huge online after the balanced token, his price quadrupled in a few hours, briefly pushing the market capitalization to $ 4 billion.
Post x deleted from Milei. Source: Kobeissi letter
Then came the inevitable crash, leaving retail traders in red allegations and fueling a pumping and dump program.
Balance Chart, which rises, must go down. Source: Dex screen
Political fallout: Milei under fire
The scandal has given fresh ammunition from Milei’s opponents. His government, which was initially silent, has now launched an internal investigation. Meanwhile, opposition leaders have seized the turmoil, trying to translate it as the worst crisis of its administration – although the indictment remains in the long term, taking into account the majority of two thirds required in the congress.
The president, while recognizing the severity of the situation, admitted that his approach to the open door of economic solutions could require a revision.
“The biggest lesson? I cannot continue to be the same Javier Milei as still, “he said. “Unfortunately, I have to start filtering who has access to me.”
The Minister of the Economy rejects the “little” crypto world
While the pressure rose, the Minister of the Economy Luis Caputo was the first to break the silence of the government on Monday evening, trying to minimize the incident as a niche misunderstanding rather than a pure and simple fault.
“Cryptocurrencies are a small infinitesimal world. It is a specialized field that is incredibly difficult to grasp, ”said Caputo. “I don’t understand the crypto either, and it was explained to me 800,000 times.”
Despite his attempts to reassure investors, the markets were not convinced. The S & P Merval index has undergone its greatest decrease by one day since July, singing by 5.6% while Buenos Aires Traders spilled actions in the best Argentinian companies.
Social media spin: chainsaw and Trump approval
While the control of political and financial damage continued, the Milei team tried to move public attention. On social networks, the presidential account praised the budgetary surplus of Argentina and underlined the meeting of Milei with the American senator Steve Daines. The president also posed with a chainsaw – a now iconic symbol of his austerity campaign – and made a decline in Donald Trump, strengthening his ties with the former American president.
In November 2024, Milei met Donald Trump and Elon Musk in Mar-A-Lago before the CPAC investors’ summit, marking Trump’s first meeting with a foreign leader after his victory in the November 5 elections.
During the event, Milei praised Trump’s victorydeclaring that it is a victory for freedom and condemning tax systems as a forced redistribution of wealth. He also congratulated Musk, who was to lead the Ministry of Efficiency of the Government of Trump, for his role in the progress of freedom of expression via X (formerly Twitter).
Since its entry into office in December 2023, Milei has aggressively reduced the Government of Argentina, reducing ministries from 24 to 8 years old, dismissing 25,000 public workers, reduced the federal budget by 30% and privatizing state companies as Aerolíneas Argentinas and Intercargo, aligning with his libertarian vision of a minimum state intervention.
Trump with Musk and Milei, Source: X
Was Milei fooled?
As speculation on The role of Milei in the debacle of the balance is deepenedSome allies maintain that he may have been deceived. Local media have cited government sources suggesting that the real culprits were those of its circle, which did not correctly check the project.
Adding fuel to the controversy, Hayden Davis, CEO of Kelers Ventures, the company behind Balance, made bombshell complaints in an interview with Dave Portnoy de Barstool Sports. Davis said that the launch of the play had been orchestrated alongside Milei and his team – although he refused to appoint names.
Dave Portnoy is at the center of the disorder of the memes piece, source: X
Portnoy, who has personally suffered heavy losses in the accident, did not chop the words, calling the balance “the biggest carpet traction of all time”. Davis then reimbursed it, but insisted on the fact that Milei was not directly involved, rather blaming the unnamed advisers in his inner circle.
“I don’t think Milei is corrupt,” said Davis. “I don’t think he even fully understands what’s going on.”
Legal storm: dry complaints and criminal surveys
Legal repercussions are already accumulating. Burwick Law, based in New York, reported that hundreds of customers who had lost money on Balance explore potential legal action. Meanwhile, Moyano & Asociados, an Argentine company, filed a complaint with the Securities and Exchange Commission of the United States (SEC).
Back home, an Argentinian judge was assigned to more than 100 cases related to the scandal. While opposition leaders have put pressure for dismissal, political mathematics remain in favor of Milei – for now.
Next stop: Washington and the IMF
Despite the tumult, Milei goes ahead with her international program. Wednesday evening, he leaves for Washington, hoping to meet Trump and ensure the support of an extended IMF program – a key element in his attempt to stabilize the fragile economy of Argentina.
He will also try to negotiate tariff exemptions as part of Trump’s new protectionist policies. But with the scandal of the scale which always makes the headlines, its ability to command credibility on the world scene is now serious.
For Milei, the fallout from the crypto are more than just a hiccup from the market – it is a political calculation that could redefine its presidency.
The co-founder of Meteora descends in the middle of the controversy of the balance
Meanwhile, Ben Chow, co-founder of Liquidity Protocol Meteora, resigned following allegations of involvement in a program to extract millions of same launches, adding fuel to the current scandal surrounding the balance.
Moty Povolotski, founder of Defi Tuna, accused Kelier Ventures – The marketing company behind Balance – of orchestrating a sophisticated scheme to siphon the funds of investors via the Meteora implementation platform in Meteora, M3M3. He also allegedly alleged that Chow had facilitated a network of cryptographic influencers who collected enormous benefits to the detriment of retail merchants.
According to Povolotski, it was not an isolated incident. He claims that similar tactics have been deployed during the previous same launches, in particular MelaniaMates and Enron. His estimates suggest that more than $ 200 million was sent to initiates who had access to chip mint addresses before launches, allowing them to buy purchases in advance and secure high profits.
Coffeezilla’s evidence connects the balance team to the unhappy part of the same Melania, Source: X
Chow denied any direct financial involvement, declaring: “I have never received or managed tokens on the side.” However, the second pseudonym co -founder of Meteora, Meow – who also leads Jupiter Dex – announced the resignation of Chow on X, quoting concerns about his direction.
“Although I am 100% sure on the character of Ben, as a project manager, he has shown a lack of judgment and care of some of the fundamental aspects of the project, in particular given his size and his current reputation, “wrote Meow. “And it is unfortunately unacceptable.”
The controversy surrounding the balance has deepened when the token – endorsed by the president of Argentina, Javier Milei, was accelerated to a “verified” list on Jupiter in the time following the launch. The exchange defended its decision, declaring that the market capitalization of the balance had already reached $ 1.5 billion, justifying verification as a protective measure for users.
Despite growing control, Meow insists that neither Jupiter nor Meteora engaged in the offense of initiate or received bad tokens. To respond to concerns, Jupiter has recruited the legal services of Fenwick & West – the same company tangled in the FTX fraud case – to conduct an independent investigation and publish an official incident report.
With the reputation and confidence of investors on the line, the results of this report can determine if that scandal is a bump on the road or a fatal blow for meteors and its leadership.
Earlier this week, Coffeezilla won an interview with Hayden Davis (alias Kelsier), one of the four key characters behind $ Libra, alongside Julian Peh (KIP protocol), Mauricio November (Tech Forum Argentina) and Manuel Godoy ( Tech Argentina Forum). In particular, Javier Milei publicly approved the balance on February 14, 2025.
During the conversation, Davis openly admitted that the balance team had sparked the launch of their own token, while the Melania team did the same for Melania. Look at the full interview below for the details.
https://www.youtube.com/watch?v=eqizjtbxaem
Celebrity supports – a road to nowhere
The pieces even supported by celebrities have often turned into high -level debacles, investors losing millions due to pump and rescue or poor project management. A recent example is Hawk Tuah (Hawk)A samecoin, based in Solana, launched in 2024 by Hailey Welch, a social media personality which has become viral for a comic interview clip.
Hawk’s Tokenomics turned out to be a hot air as the initiates were dumped, source: X
The token experienced a rapid increase in the price when launching but quickly collapsed, with allegations of initiate discharge and liquidity manipulation. Similar cases include Jenner token from Caitlyn JennerWho raised the eyebrows after the blockchain detectives discovered a suspicious portfolio activity linked to the initiates. Even Trump’s name was not enough to maintain the price of the room even Trump above the water.
The mother’s corner of rapper Iggy Azalea was also faced with controversy, while criticism accused her of receiving money on the mania of the same corner without offering real usefulness. Even traditional characters like Kim Kardashian And Floyd Mayweather were sentenced to a fine by the SEC for the promotion of crypto projects without disclosure. These debacles highlight the volatile and often reckless nature of the cryptocurrencies exposed to celebrities, where the beateering frequently prevails over the substance, leaving fans and investors holding the bag.