President Javier Milei promoted a cryptocurrency token aimed at aiding small businesses, but later distanced himself from the project following a significant price crash.
Following President Javier Milei’s endorsement of a cryptocurrency, opposition lawmakers in Argentina are threatening impeachment proceedings, Reuters reported. The president publicly promoted the LIBRA coin on X, resulting in a rapid price surge to nearly $5, followed by a dramatic fall to below $1 within hours. Milei subsequently removed his initial endorsement, claiming unawareness of the project’s specifics.
Opposition members, such as Leandro Santoro, have strongly criticized Milei’s actions, alleging an abuse of public trust due to his promotion of a potentially fraudulent cryptocurrency. Santoro called for impeachment proceedings, citing the international embarrassment caused by the incident.
“This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” Santoro stated.
Argentina’s fintech chamber suggested the possibility of a “rug pull” scam, where developers inflate a cryptocurrency’s value before withdrawing their investments.
Milei revealed a prior meeting with KIP Protocol, the LIBRA coin’s developers, citing it as part of his economic revitalization strategy. A photo on KIP Protocol’s website shows Milei and a co-founder giving a thumbs-up, dated October 30, 2024. The coin’s name is speculated to be linked to Milei’s political party, La Libertad Avanza.
KIP Protocol also denied involvement in the LIBRA token launch, stating on X that “market making was fully handled by KelsierVentures” and asserting that they “did not profit a single cent from today’s activity.”
Since taking office in 2023, Milei has implemented austerity measures including a 52% currency devaluation, over 33,000 public sector job cuts, and significant reductions in state subsidies. Earlier this year, Milei announced achieving a zero budget deficit, following a reported annual surplus of 1.76 trillion pesos (approximately $4.5 billion).