Argentina’s President Javier Milei is facing a potential impeachment threat after his endorsement of the controversial LIBRA cryptocurrency sparked accusations of misconduct. Opposition lawmakers have expressed outrage over the president’s involvement with the coin, which crashed shortly after his recommendation.
On Friday, Milei, a libertarian leader, shared a post on X (formerly Twitter) promoting the LIBRA token as a tool to support small businesses. The value of the cryptocurrency surged to nearly $5 following the endorsement, but it quickly plummeted below $1 within hours. Milei deleted his initial tweet five hours later, only to issue a follow-up message claiming he was “not aware of the details of the project.”
The rapid rise and fall of LIBRA prompted serious concerns about its legitimacy, with critics accusing the president of reckless promotion. Opposition lawmaker Leandro Santoro condemned the president’s actions, labeling it an abuse of public trust and a “scandal” that tarnishes Argentina’s international reputation. Santoro and other members of the opposition have threatened to initiate impeachment proceedings, calling for an investigation into Milei’s involvement with a cryptocurrency that may have been linked to possible fraud.
The situation has raised red flags within Argentina’s fintech community, with the country’s fintech chamber acknowledging the possibility of a “rug pull” – a deceptive practice where cryptocurrency developers artificially inflate the value of a token only to later sell off their holdings, leaving investors with worthless assets.
In the aftermath of the crash, Milei clarified his stance, stating that he had met with KIP Protocol, the company behind the LIBRA token, months ago as part of his broader efforts to attract foreign investment and revive Argentina’s struggling economy. A photo on KIP Protocol’s website, dated October 30, 2024, shows Milei giving a thumbs-up alongside the company’s co-founder, further fueling speculation about the president’s ties to the cryptocurrency.
However, KIP Protocol has distanced itself from the token’s launch, claiming in a statement on X that the market activity surrounding LIBRA was solely managed by KelsierVentures, and that the company did not benefit financially from the token’s trading activity.
Milei’s administration, which assumed office in 2023, has implemented radical economic reforms aimed at stabilizing the country’s fragile economy. His government has introduced a range of measures, including a 52% devaluation of the national currency, the elimination of over 33,000 public sector jobs, and significant cuts to fuel, transport, and energy subsidies. Despite the controversy surrounding the LIBRA token, Milei’s government has also claimed success in meeting its goal of achieving a budget surplus for the first time in over a decade, further bolstering the president’s reputation with his supporters.
