Buenos Aires: President Javier Milei faces impeachment calls after promoting a little-known cryptocurrency.
The digital asset surged in value before collapsing, causing massive investor losses.
Argentina’s opposition accused Milei of supporting a fraudulent scheme.
The presidency denied wrongdoing, calling it an unfortunate mistake.
The incident sparked a political storm across the country.
Social Media Post
The controversy began when Milei posted about the $LIBRA cryptocurrency.
His X account, followed by 3.8 million users, featured a promotional message.
He claimed the project would help Argentina’s economic growth.
Hours later, Milei deleted the post and distanced himself from the initiative.
He clarified that he had no prior knowledge of the project.
Government Response
Milei’s team called the situation a misunderstanding in response to media inquiries.
Argentina’s National Securities Commission is reviewing potential regulatory actions.
The presidency announced an official investigation into the matter.
The Anti-Corruption Office was tasked with examining government involvement.
Authorities will determine if Milei or officials engaged in misconduct.
Rapid Market Fluctuations
Initially, most $LIBRA tokens were concentrated in a few wallets.
Before Milei’s endorsement, its value was nearly zero.
His post triggered a surge, pushing the price close to $5.
Within three hours, the value crashed to just cents.
Crypto trading platforms confirmed the dramatic price shift.
Expert Analysis
Crypto security expert Pablo Sabbatella called the project highly suspicious.
He noted the website was registered just one day before Milei’s post.
The cryptocurrency contract ran on Solana’s blockchain, known for volatile assets.
Sabbatella suggested large holders manipulated the price.
They bought at low prices, then sold for millions in profit.
Fraud Allegations
The scheme resembled a classic “pump and dump” fraud.
Some investors earned over $4 million within two hours.
One major seller reportedly made $87 million from the token.
Argentina’s opposition blamed Milei for enabling financial losses.
Political leaders demanded accountability for affected investors.
Impeachment Move
The Union for the Homeland coalition announced impeachment proceedings.
They accused Milei of recklessly promoting an unverified financial product.
The opposition argued his actions damaged public trust.
Calls for legal consequences intensified following the scandal.
Milei now faces his biggest political crisis since taking office.
