Argentina's Opposition Pushes for Impeachment Trial After President Milei Endorses $LIBRE Cryptocurrency

Opposition lawmakers call for President Milei's impeachment following the cryptocurrency crash

Argentine President Javier Milei is facing growing backlash and potential impeachment after promoting the cryptocurrency $LIBRE, which subsequently collapsed. The endorsement, made on social media platform X, saw the coin's value skyrocket before rapidly plummeting, sparking concerns about possible fraudulent activity.

On Friday evening, Milei recommended $LIBRE to his followers, touting the cryptocurrency as a potential asset for the country's economy. Shortly after his post, the value of $LIBRE surged to nearly $5 per coin, generating significant attention. However, within hours, the token's price crashed to under $1, raising alarms about a possible "rug pull" scheme, where developers inflate the value of a cryptocurrency before offloading their own holdings, leaving investors with devalued assets.

In light of the incident, opposition lawmaker Leandro Santoro demanded action, calling it a national embarrassment. "This scandal, which damages our reputation internationally, forces us to call for an impeachment request against the president," he stated, further fueling the growing calls for Milei's removal from office.

Following the uproar, Milei deleted his original post and issued a statement clarifying his involvement. He explained that he had been unaware of the project's details when endorsing the cryptocurrency, and after learning about its problematic nature, he chose to remove the post. "I was not aware of the details of the project, and once I found out, I decided to no longer give it publicity," he said.

The cryptocurrency's sudden rise and fall highlight ongoing concerns about the potential for scams in the crypto market. Cryptocurrencies like $LIBRE, which lack substantial backing and exhibit extreme volatility, have drawn warnings from experts about their risks. The concentration of the token’s supply among a few wallets further raises red flags about the possibility of market manipulation and fraud.

This is not the first time Milei has been linked to controversial cryptocurrency ventures. In 2021, he was involved with CoinX, a platform later accused of operating a Ponzi scheme. The founders of CoinX were arrested in 2023, further exemplifying the dangers of unregulated digital assets in Argentina.

As this controversy unfolds, the Argentine public and international observers are closely watching the political and financial ramifications. This situation underscores the need for clearer regulations and more transparency in Argentina’s growing cryptocurrency space, especially given the financial instability in the country.