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Argentine president Javier Milei faces impeachment over $107 million crypto scandal

By isabelle // 2025-02-18

• Argentine President Javier Milei faces impeachment risk after promoting a cryptocurrency that collapsed, losing 94% of its value.
• The token′s plunge follows an $107 million liquidity siphon by insiders, leaving investors with nearly worthless tokens.
• Milei's critics and opposition lawmakers accuse him of enabling a scam, questioning his judgment and demanding accountability.
• This is not Milei's first crypto controversy; in 2022, he was linked to the CoinX platform, which vanished with investors' funds.
• A federal judge is investigating the fraud, and the scandal has damaged Milei's reputation and reform agenda.

Argentine President Javier Milei is now at risk of impeachment after endorsing a cryptocurrency that collapsed in what critics are calling a $107 million "rug pull." The scandal erupted on Friday, when Milei promoted the $LIBRA token on social media, only for insiders to cash out and wipe out nearly 94% of its value within hours. Opposition lawmakers are demanding accountability, accusing Milei of enabling a scam that has embarrassed Argentina on the global stage. This is not the first time Milei has been linked to a cryptocurrency controversy. In 2022, he faced allegations of promoting a dubious crypto platform called CoinX, which later vanished with investors' money. Now, as the $LIBRA scandal unfolds, Milei's critics are questioning his judgment and integrity, while his political opponents are pushing for impeachment.

The LIBRA collapse: A classic rug pull

The $LIBRA token, developed by KIP Protocol and promoted by Milei, was marketed as a tool to "encourage the growth of the Argentine economy." Milei's now-deleted X post included a link to purchase the token, which briefly surged to a market capitalization of $4.56 billion before plummeting to $257 million in just 11 hours. Blockchain analysis firm Lookonchain revealed that eight wallets linked to the $LIBRA team siphoned $107 million in liquidity, leaving retail investors with worthless tokens. Milei initially defended his endorsement, framing the project as a private initiative to boost Argentina's economy. However, after the token's collapse, he deleted his post and blamed political opponents for exploiting the situation. "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,” Milei wrote on X.

Milei's ties to the scandal

Despite Milei's claims of innocence, evidence suggests he had multiple interactions with key figures behind the $LIBRA project. On January 30, Milei met with Hayden Mark Davis, a crypto entrepreneur presented as an infrastructure partner for the project. Davis later blamed Milei for the token's collapse, accusing him of causing a "wave of panic selling" by withdrawing his support. "Despite prior commitments, Milei and his team unexpectedly changed their position, withdrawing their support and deleting all previous posts on social media," Davis said in a video statement. Opposition lawmakers and legal experts argue that Milei's actions violated Argentina's Public Ethics Law. "This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president," said opposition lawmaker Leandro Santoro. This is not Milei's first brush with cryptocurrency scandals. In 2022, he promoted CoinX, a platform that promised high returns but later disappeared with investors' funds. Milei defended his involvement, stating, "I charge for my opinions," but refused to accept responsibility for the losses suffered by his followers. The $LIBRA scandal has reignited concerns about Milei's judgment and his ability to lead Argentina's economy. As the president who campaigned on fiscal responsibility and economic reform, Milei's involvement in a crypto scam has left many questioning his credibility.

What's next for Milei?

While impeachment remains a possibility, Milei's political opponents face an uphill battle. However, the scandal has already damaged his reputation and diverted attention from his reform agenda. A federal judge has been appointed to investigate the fraud allegations, and the Anti-Corruption Office is examining whether Milei or his administration acted improperly. For now, Milei remains defiant. "I was not aware of the details of the project and after learning about it, I decided not to continue promoting it," he said in a recent interview. But as the fallout continues, Milei's presidency is under unprecedented scrutiny, and the $LIBRA scandal may prove to be a turning point in his political career. The $LIBRA scandal has exposed the risks of celebrity-endorsed cryptocurrencies and raised serious questions about Milei's leadership. As Argentina grapples with the fallout, it remains to be seen whether Milei can weather this storm—or if it will mark the end of his presidency. Sources for this article include: ZeroHedge.com APNews.com TheGrayZone.com BBC.com

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