Argentine President Javier Milei, once lauded for his Bitcoin-focused policies, is now facing impeachment over his involvement in a “crypto scandal”.
According to multiple reports, opposition lawmakers in Argentina have called for the impeachment of their president after he actively pushed for a new crypto which quickly collapsed, causing millions of dollars in losses.
President Milei Promoted Libra
Milei actively advertised a new crypto token, Libra, and even posted a pitch for the token last Friday evening. In his Twitter/X post, he shared that the project aims to boost the Argentine economy by helping entrepreneurs and small business owners.
His post was linked to the crypto’s official website, which interestingly carries Milei’s campaign slogan, “Long Live Freedom”.
Within minutes after launch, the token surged to $5, but it dropped to less than $1 in just hours, causing massive losses.
It Started With A Tweet And Ended With Millions Of Dollars In Losses
President Milei’s involvement in the crypto project has caused a financial and political scandal in Argentina. Opposition politicians immediately attacked the president, saying he promoted a scam, an allegation the president vehemently denied.
The president’s involvement started with a Twitter/X post (now deleted) encouraging his 3.8 million followers to invest in the project to spur the country’s economic growth.
It all began with this post at 5:01 PM ET from Javier Milei.
As seen during President Trump’s memecoin launch, the first hour was full of speculation:
Was this a hack or a real launch?
It turned out to be real as multiple other Argentinian politicians posted the news. pic.twitter.com/cL0ZQgxtCB
— The Kobeissi Letter (@KobeissiLetter) February 15, 2025
Hours later, the president removed the message and shared another post saying he was not connected to the crypto project. He further explained that he was unaware of its details and, after getting more information, he decided not to support it. Milei later issued a (Google translated) statement on X blaming political opponents:
“To the filthy rats of the political caste who want to take advantage of this situation to do harm, I want to say that every day they confirm how vile politicians are, and they increase our conviction to kick them in the ass.”
In an interview with CNN, President Milei’s team admitted that the post “was a mistake.” CNN tried to contact the country’s National Securities Commission to clarify whether they were taking action against Milei.
Libra Launched To High Price Volatility
The Libra token immediately surged in value, from almost zero at launch to nearly $5, before dropping to under $1. According to multiple reports, the token’s surge in price started after President Milei posted on Twitter/X to promote the coin.
As of today, the market cap of cryptocurrencies was recorded at $3.1 trillion. Chart: TradingView
The country’s fintech chamber noted that the Libra launch is similar to a “rug pull”, a crypto scam where the token surges or pumps in price before plummeting in value, while insiders sell or “dump” their holdings. Other analysts say that the crypto project is similar to a Ponzi scheme or a fraud.
Image: Grafa
As Critics Found Red Flags, Milei Gets Some Support
Crypto experts like Pablo Sabbatella noted a few red flags about the crypto project. Sabbatella pointed out that the crypto’s site was set up a day before the token’s launch, indicating a potential scam. He added that the token was minted just minutes before the Argentine president posted his message on social media.
Sabbatella noted that the whales bought the tokens “practically for free”, and when its price surged, they unloaded their holdings for massive profits. He added that some accounts got in at a low cost, with holdings worth $4 million, but managed to earn up to $87 million within hours.
The president found a few supporters as the political opposition highlighted the scandal. Milei found an ally in Security Minister Patricia Bullrich, who said the leader has freedom of expression.
Bullrich added that President Milei’s post is similar to an investor’s visit to a factory, but it doesn’t imply that he’s lobbying for the business.
Featured image from AP, chart from TradingView
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