Buenos Aires, Argentina – Argentine President Javier Milei is facing impeachment calls and legal action after his promotion of a controversial cryptocurrency led to massive financial losses for investors. The scandal has sparked a political firestorm, with opposition leaders accusing Milei of fraud and financial misconduct.
How the Crypto Scandal Unfolded
The controversy erupted when Milei took to X (formerly Twitter) on Friday, endorsing $LIBRA, a cryptocurrency he claimed would help fund small businesses and startups. His public backing caused the token’s price to skyrocket, prompting a surge of investor interest.
However, within hours, the post was deleted, and $LIBRA’s value crashed, wiping out millions in investments. Enraged investors and political opponents quickly labeled the incident a “crypto scam,” leading to allegations of fraud and calls for impeachment.
Impeachment & Fraud Allegations Gain Momentum
The fallout has been swift and severe:
✅ Lawyers filed fraud complaints in Argentine courts, alleging that Milei misled the public for financial gain.
✅ Online critics accused Milei of a “rug pull” scheme, a tactic in which promoters artificially inflate a cryptocurrency’s value before abandoning it, leaving investors with worthless assets.
Milei’s Defense: Damage Control or Genuine Concern?
In response to mounting criticism, Argentina’s presidential office issued a statement, explaining that the post was removed to prevent further speculation after public backlash.
However, critics argue that Milei’s endorsement directly influenced the sudden surge and crash of $LIBRA, making him complicit in the alleged fraud.
Legal experts like Jonatan Baldiviezo, one of the plaintiffs in the case, argue that Milei’s influence played a “critical role” in the scandal.
Political Fallout & Public Outrage
The crisis has deepened Milei’s already contentious relationship with Argentina’s political elite. The main opposition coalition has vowed to file impeachment requests, further destabilizing his presidency.
Meanwhile, public anger continues to rise, with investors demanding compensation and protests brewing in major cities like Buenos Aires and Córdoba.
The Bigger Picture: Crypto’s Risk in Politics
This high-profile crypto scandal has reignited debates about the dangers of government officials promoting digital assets. Experts warn that Milei’s actions could set a dangerous precedent and shake confidence in Argentina’s already fragile economic stability.
“Cryptocurrencies are highly volatile. A single endorsement from a political leader can create false hype, leading to massive losses for uninformed investors,” said financial analyst Ricardo López.
What’s Next for Milei?
With legal investigations underway and impeachment discussions gaining traction, Milei’s presidency faces its biggest test yet. Whether he survives the storm or faces removal from office remains to be seen.
