Argentina’s President Javier Milei Faces Impeachment Threats Over Crypto Controversy

Javier Milei at Donald Trump’s inauguration (Shawn Thew/Getty Images)

Milei’s Crypto Endorsement Gone Wrong

In a now-deleted social media post on Friday, Milei promoted LIBRA as a private initiative aimed at supporting Argentina’s small and medium-sized businesses. While he clarified that he had no financial stake in the project, his endorsement sent LIBRA’s value soaring, briefly reaching a market capitalization of $4.5 billion.

However, just five hours later, Milei reversed course, deleting the post and claiming he had not been fully aware of the project’s details. His sudden retraction triggered a market crash, wiping out over 90% of LIBRA’s value and erasing more than $4 billion from its market cap. Data from sources including Kobeissi Letter and Bubblemaps indicated that insiders offloaded approximately $87.4 million worth of tokens before the collapse.

Political Fallout and Impeachment Threats

The dramatic rise and fall of LIBRA have led to allegations of a potential “rug pull,” a type of financial scam where early investors cash out before a market crash, leaving others with significant losses. Argentina’s fintech chamber has raised concerns about the legitimacy of the project, further fueling speculation.

Leandro Santoro, an opposition lawmaker, labeled the situation a “national embarrassment” and stated that the scandal warrants impeachment proceedings against Milei. The controversy comes at a sensitive time, as Argentina grapples with economic instability and public skepticism toward cryptocurrency-related initiatives.

The Bigger Picture

This latest incident underscores the risks of political figures engaging with cryptocurrency markets, especially in volatile economies like Argentina’s. While Milei has positioned himself as a libertarian proponent of financial decentralization, his apparent misstep with LIBRA raises questions about due diligence and the broader implications of government leaders influencing speculative investments.

As Argentina watches the fallout unfold, the question remains: will this crypto controversy be a mere political misstep, or could it lead to real consequences for Milei’s presidency?

Liam Anderson

Liam is an igaming industry expert with over a decade of experience in game development and casino operations. At Bonustly, he provides players with honest and insightful reviews, drawing from his deep understanding of how the industry works behind the scenes. He personally tests every casino he reviews, ensuring fairness, transparency, and value for players. By staying on top of industry trends, he delivers up-to-date and reliable information on the ever-evolving world of Crypto Casinos.