Argentinian President Javier Milei is facing calls for impeachment after his endorsement of a cryptocurrency project named $LIBRA resulted in a catastrophic collapse over the weekend.
The controversial token, which Milei had promoted as a way to boost Argentina’s economy, briefly soared to a market cap of $4.5 billion before crashing 94% in just a few hours. Insiders reportedly dumped over $100 million worth of tokens, sparking panic selling among investors.
Now, fraud charges have been filed against Milei, and opposition politicians are demanding his removal from office, calling the incident an international embarrassment.
Milei’s Endorsement Triggers $4.5 Billion Surge – Then a 94% Collapse
On February 14, President Milei posted on X (formerly Twitter) that $LIBRA was created to fund small Argentine businesses and startups.
💰 Impact of Milei’s Endorsement:
- The token’s market cap skyrocketed to $4.5 billion within hours.
- Investors poured in funds, trusting the president’s backing.
- The hype quickly turned into a financial disaster.
Just 11 hours later, $LIBRA had crashed to $257 million, wiping out billions. The collapse was directly linked to eight wallets connected to project insiders, who allegedly sold off $107 million worth of tokens—a move consistent with a classic rug pull.
Impeachment Calls as Argentina Faces Global Embarrassment
The massive losses and Milei’s involvement in promoting $LIBRA have led to an intensified political crisis.
Leandro Santoro, an opposition leader, has formally called for Milei’s impeachment, arguing that the president’s actions have damaged Argentina’s reputation on a global scale.
🗣 Santoro stated:
“This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president.”
Meanwhile, Argentina’s Fintech Chamber has confirmed that $LIBRA exhibited signs of a rug pull, adding credibility to fraud accusations.
🚨 Legal Action:
- A group of Argentine professionals—including lawyers, engineers, and the former head of Argentina’s Central Bank—have filed fraud charges against Milei.
- Jonathan Baldiviezo, who led the charge, told the Associated Press:
“Within this illicit association, the crime of fraud was committed, in which the president’s actions were essential.”
A judge is expected to be assigned to the case on Monday, meaning Milei could face a formal investigation in the coming days.
Who Created $LIBRA?
According to a Twitter/X investigation by blockchain researcher @PixOnChain, the $LIBRA project was developed by Julian Peh, the founder of crypto startup KIP Protocol.
🔹 Peh’s involvement with Milei:
- Peh first met Milei at a crypto forum in Buenos Aires.
- Months later, he was appointed to Argentina’s Blockchain Committee, where he advised Milei on crypto policy.
- This raises serious concerns about potential conflicts of interest.
While Milei has since deleted his endorsement of $LIBRA, the damage to both investors and his presidency is already done.
Will Milei Survive the Fallout?
The $LIBRA scandal has plunged Argentina into political turmoil, with its president now facing impeachment calls and fraud charges.
As the investigation unfolds, the key questions remain:
❓ Did Milei personally benefit from the $LIBRA rug pull?
❓ Will a judge formally charge the president with fraud?
❓ Can Milei survive the growing political backlash?
With the world watching, Argentina’s leadership is now under intense scrutiny, and Milei’s political future hangs in the balance.
