Argentine President Javier Milei is under fire after his public endorsement of the LIBRA cryptocurrency led to a financial disaster. The little-known token surged in value after Milei promoted it on X, only to plummet within hours, triggering accusations of market manipulation and calls for his impeachment.
The Crypto Endorsement That Backfired
On Friday night, Milei posted a now-deleted tweet praising $LIBRA, describing it as a private project supporting Argentina’s economic growth. Almost instantly, the token’s price skyrocketed to nearly $5 per coin, attracting a wave of investors eager to cash in.
But the excitement was short-lived. Just hours later, LIBRA collapsed below $1, erasing millions in market value. Large wallet holders dumped significant amounts of LIBRA, suggesting a classic “rug pull”—a scheme where early investors inflate a token’s price before selling off their holdings, leaving later buyers with worthless assets.
The KIP Network, a Web3 development company reportedly linked to the token, has denied involvement in fraudulent activities. However, its past connections to Argentina’s government blockchain initiatives have fueled speculation about insider coordination.
Threats of Impeachment For Milei Over LIBRA Release
The crash sparked outrage among opposition lawmakers, with Leandro Santoro leading calls for Milei’s impeachment. Santoro described the debacle as a “national embarrassment”, accusing the president of reckless financial promotion at a time when Argentina is battling economic turmoil.
Milei swiftly deleted his X post, later claiming he had no connection to the cryptocurrency and was unaware of the project’s details before promoting it. “I removed the post as soon as I learned more about the situation,” he stated. However, the damage was done. Critics argue that a sitting president should not irresponsibly endorse speculative financial products, especially as Argentina grapples with triple-digit inflation and a struggling economy.
Facing mounting pressure, Milei’s government has launched an internal investigation, led by Argentina’s Anti-Corruption Office (OA), to assess whether any government figures—including Milei himself—engaged in misconduct.
The opposition is pushing for Congress to form a special inquiry committee, and legal analysts suggest the fallout could accelerate impeachment proceedings. Meanwhile, investors burned by LIBRA’s collapse are demanding accountability, with social media flooded with reports of losses exceeding hundreds of thousands of dollars.
