Argentina’s president Milei faces impeachment over $LIBRA scam
2 Min Read
The coin's value surged rapidly, reaching a market cap of $4.4 billion, but within hours, it collapsed to under $1, resulting in heavy financial losses for many investors.
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Argentina's President Javier Milei arrives to speak at Mar-a-Lago, Nov. 14, 2024, in Palm Beach, Fla (AP)
Argentina’s President, Javier Milei, is facing scrutiny after endorsing a cryptocurrency on social media, which subsequently crashed and caused significant losses for investors. On Friday night, Milei posted on X in support of the little-known coin, $LIBRA, claiming it would help “stimulate the economy and support small businesses in Argentina.”
The coin's value surged rapidly, reaching a market cap of $4.4 billion, but within hours, it collapsed to under $1, resulting in heavy financial losses for many investors.
Milei swiftly deleted the post and later stated that he was unaware of the details of the coin before promoting it. He explained, “Once I became aware of the situation, I removed the post and distanced myself from the project.”
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The incident has raised suspicions of a potential “rug pull” scam, where developers artificially inflate a coin's value before selling off their holdings, leaving investors with worthless tokens. Despite the crash, the coin still holds a market value of $250 million.
Reuters reported that opposition lawmakers in Argentina have suggested that Milei could face an impeachment trial in Congress over the incident. Meanwhile, the country’s fintech chamber has acknowledged the possibility of foul play.
The situation has highlighted not only Milei’s involvement but also the broader risks associated with cryptocurrency investments, showing how quickly the market can shift from hype to disaster.
Read next: Maduro: 'Milei the bandit stole the plane from Venezuela'
