Argentina President Javier Milei is facing impeachment calls following the dramatic collapse of the LIBRA cryptocurrency, which he publicly endorsed. The fallout has triggered legal action, political turmoil, and an official investigation, shaking Argentina’s financial and political landscape.
Argentina President LIBRA Endorsement Turned Disaster
The controversy began when President Milei promoted $LIBRA on social media, backing the “Viva La Libertad Project,” which claimed to support Argentina’s small businesses and startups. His endorsement fueled a surge in $LIBRA’s value, sending its market cap to $4.6 billion in record time.
However, the rally was short-lived. Within hours, the token crashed over 90%, wiping out billions in investor funds. Blockchain analysts later uncovered a possible “rug pull,” with $107 million withdrawn by wallets linked to the $LIBRA team.
Legal and Political Fallout
Following the crash, Milei deleted his promotional post, issuing a statement claiming he was unaware of the project’s financial operations. But this has not silenced his critics. Opposition leaders have seized the moment, accusing him of either negligence or direct complicity in financial fraud.
Key developments include:
- Impeachment demands: Lawmakers are calling for Milei’s removal, citing his role in misleading investors.
- Fraud charges filed: A criminal case has been opened, alleging an “illicit association to commit fraud.”
- Government investigation: Argentina’s Anti-Corruption Office has launched a full probe, examining the $LIBRA project and public officials’ involvement.
A special task force is also investigating KIP Protocol, the developers behind $LIBRA, tracking where the missing funds have gone.
Impact on Argentina’s Crypto Market & Global Crypto Regulation
The scandal has shaken investor confidence in Argentina’s crypto market, sparking broader discussions about the need for stronger regulation. Experts warn that this case highlights:
- The risks of political endorsements in crypto markets.
- The urgent need for investor protection in the face of unregulated tokens.
- The potential for high-profile figures to unintentionally—or intentionally—manipulate markets.
As the investigation unfolds, Argentina is now at a political crossroads. If the impeachment efforts gain traction, it could set a global precedent for political accountability in crypto-related scandals.
For now, the nation watches whether Milei can survive this crisis—or if this will mark the end of his presidency.
