Argentine President Faces Impeachment Calls Over Digital Currency Scandal

Argentine President Javier Milei is under fire after endorsing a little-known cryptocurrency that skyrocketed in value—only to crash within hours, leaving thousands of investors with heavy losses. The incident has sparked a political storm, with opposition leaders accusing Milei of promoting a financial scam—an allegation the presidency firmly denies.

A Tweet That Shook the Market

The controversy began when Milei posted a tweet to his 3.8 million followers on X, endorsing the $LIBRA cryptocurrency. "This private project will be dedicated to encouraging the growth of the Argentine economy," he wrote, linking to the project.

However, just hours later, the president deleted the tweet and distanced himself from the initiative. In a follow-up post, Milei claimed he was unaware of the project’s details and decided to stop promoting it after learning more. "I was not aware of the details of the project, and after becoming informed, I chose not to continue spreading it," he stated.

Investigation Launched Amidst Political Uproar

Following a CNN inquiry, Milei’s team described the situation as a mistake. Meanwhile, Argentina’s National Securities Commission is considering whether to take action. In response to growing criticism, the presidency announced an internal investigation, stating:

"President Javier Milei has decided to immediately involve the Anti-Corruption Office to determine whether there was any improper conduct by any member of the national government, including the president himself."

From Boom to Bust in Three Hours

At the time of its launch, most of $LIBRA’s tokens were concentrated in a few digital wallets, and its value was almost nothing. But after Milei’s endorsement, its price surged to nearly $5—before crashing to just a few cents within three hours, according to trading data.

Crypto security expert Pablo Sabbatella told CNN that Milei had shared a "smart contract" linked to the Solana blockchain, which has recently gained popularity among high-risk investors. Sabbatella noted several red flags, including the fact that the project's website was registered just a day before Milei’s tweet—something commonly seen in scams.

"The whales—large holders of the asset—bought in at nearly zero, the price skyrocketed, and then they sold at the peak," Sabbatella explained. "It’s a classic 'pump and dump' scheme."

According to him, some traders made staggering profits, with one wallet raking in over $87 million within hours.

Calls for Impeachment Grow

The opposition party, Union for the Homeland, has seized on the scandal, announcing plans to push for Milei’s impeachment. The presidency has yet to issue an official response to the impeachment calls.

However, Milei’s allies have dismissed the controversy, with Congressman Diego Santilli calling it an attempt to "overthrow" the president. Security Minister Patricia Bullrich also defended Milei, comparing his tweet to a routine presidential visit to a factory, saying:

"The president has the freedom to discuss whatever topics he wants. A tweet does not mean lobbying for a project."

With an investigation underway and political tensions rising, the fallout from this cryptocurrency fiasco is far from over.