Argentina’s Milei faces trouble over crypto controversy
Argentina’s President Javier Milei is facing calls for impeachment after promoting a cryptocurrency that crashed within hours, wiping out billions of dollars.
On February 14, Milei posted on social media endorsing a new digital coin called $LIBRA, claiming it could help Argentina’s economy.
After his post, the value of the coin skyrocketed to nearly $5,000 per token, with a total worth of $4.6 billion. But just hours later, it collapsed to under $1, leaving investors with massive losses.
Crypto experts say the situation looks like a “rug pull,” a scam where creators lure investors and then disappear with the money.
Reports suggest that those behind $LIBRA may have withdrawn over $100 million before the crash.
Even before the meltdown, analysts had warned about the project, pointing out that a small number of accounts controlled most of the coin’s supply, making it easy to manipulate prices.
After backlash, Milei deleted his post and said he had no ties to the project.
His lawyer insisted he had done nothing wrong. The government later announced that Milei had asked Argentina’s Anti-Corruption Office to investigate if any officials, including himself, were involved in wrongdoing.
Meanwhile, some lawmakers want to remove him from office, calling the scandal an embarrassment. Opposition leader Cristina Kirchner accused Milei of being part of a crypto scam. Others pointed out that this isn’t the first time Milei has promoted questionable digital currencies.
The controversy comes as Milei’s government is trying to fix Argentina’s struggling economy.
