Argentine President Javier Milei is facing impeachment calls after promoting a cryptocurrency that soared in value before crashing, leaving thousands of investors with heavy losses.
Milei’s LIBRA Endorsement Sparked a Surge
Milei endorsed the Solana-based LIBRA token on his social media, telling his 3.8 million X followers it was a private initiative to boost Argentina’s economy by funding small businesses and startups.
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The endorsement sent the token’s price surging to nearly $4.56 and nearly $4.56 billion market cap, only for it to collapse more than 90% within hours, wiping out millions in investor funds.
After the token’s collapse, President Milei deleted his post claiming he had no prior knowledge of the project’s details, saying he stopped promoting it once he learned more.
However, Argentina’s fintech chamber recognized the case as potentially a “rug pull,” where creators inflate a crypto’s value before cashing out.
Escalating Controversy
The controversy escalated after Hayden Mark Davis, an advisor to the LIBRA project and its developer, KIP Protocol, claimed the promotional campaign was coordinated with President Milei’s team.
According to an official statement from the Argentine Presidential Office, Milei met with KIP Protocol representatives on October 19, where he was briefed on their plan to launch Viva la Libertad, a blockchain project aimed at financing private ventures in Argentina.
The cryptocurrency, developed by KIP Protocol, was accessible through vivalalibertadproject.com, a website referencing Milei’s signature slogan, ¡Viva la libertad, carajo!
As the backlash grew, the presidential office announced a special investigative task force to examine the LIBRA launch. The unit, composed of financial, crypto, and anti-money laundering regulators, will investigate all entities involved in the operation.
Despite that, Argentina’s opposition is not ready to back down and is considering initiating impeachment proceedings against the president.
“This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” said opposition lawmaker Leandro Santoro.
Why This Matters
The scandal raises serious questions about public officials’ ethical responsibilities in promoting financial products. For Argentina, which is already facing economic struggles, Milei’s involvement could increase political tensions.
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