Argentine President Javier Milei may face an impeachment trial after endorsing a cryptocurrency that crashed shortly after his promotion. On Friday night, Milei posted on X recommending the little-known crypto coin $LIBRE, which surged to nearly $5 but quickly plummeted to under $1 within hours.
The Argentine fintech chamber suggested the incident could be a “rug pull,” where developers attract investments, inflate the token's value, and then sell off their holdings, leaving investors at a loss. Opposition lawmaker Leandro Santoro called the situation an “international embarrassment” and announced plans to seek Milei’s impeachment.
Milei deleted the post after a few hours, stating he had no ties to the cryptocurrency and was unaware of the project’s details. “Once I found out, I decided not to continue promoting it,” he explained.
The scandal has intensified political tensions in Argentina, already grappling with economic instability. Crypto scams are increasingly common, making the involvement of a head of state particularly controversial. Milei, a libertarian known for his radical economic views, has previously expressed support for digital currencies.
As Argentina navigates economic challenges, this incident adds to the uncertainty, potentially impacting investor confidence. The $LIBRE crash highlights the volatile nature of cryptocurrencies and the risks associated with unvetted endorsements.
The coming weeks will be critical as Congress debates the impeachment motion. The outcome could significantly influence Milei’s presidency and Argentina’s political landscape. Observers will be watching closely to see how this unprecedented event unfolds, affecting both national politics and the global crypto market.