Argentine President Javier Milei may face impeachment after promoting a cryptocurrency that swiftly climbed in value before crashing, opposition lawmakers announced on Saturday.
Reports in the public domain indicate that on Friday (Feb 14, 2025) evening, Milei posted on social media platform X, recommending a little-known crypto token, ‘ $LIBRE’. The price of the coin surged to nearly $5 soon after, but within hours, it dropped to under $1.
Critics suspect the incident may have been a ‘rug pull’ scam, where developers artificially inflate a cryptocurrency’s value before selling their holdings and abandoning the project. Argentina’s fintech chamber raised concerns, suggesting the cryptocurrency could be a fake scheme.
Opposition lawmaker Leandro Santoro condemned the situation, calling it an embarrassment for the country. “This scandal requires us to launch an impeachment request against the president,” Santoro said, according to reports.
Milei deleted the post after learning more about the situation. In a statement, he denied any connection to the cryptocurrency, saying, “I was not aware of the details of the project and once I found out, I decided not to continue giving it publicity.”
The controversy comes amid Argentina’s ongoing efforts to integrate cryptocurrency into its economy. The country legalized Bitcoin and other cryptocurrencies for contract settlements and payments in 2024, as part of broader reforms to address hyperinflation.
The cryptocurrency incident urged the Argentine presidency to announce an investigation. Milei’s office said the Anti-Corruption Office would examine the situation to determine if any improper conduct occurred, including by the president himself. The presidency also clarified that Milei had not participated in the development of the cryptocurrency.
Economists and critics are calling for further scrutiny of the situation. Javier Smaldone, a digital influencer, labeled the cryptocurrency launch a ‘global scam,’ with reports suggesting profits of around $107 million. Former president Cristina Kirchner even referred to Milei as a ‘crypto-scammer.’
As the investigation unfolds, lawmakers are pushing for a special inquiry to determine the extent of Milei’s involvement in the controversial promotion.
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