Crypto News

Impeachment Threat Looms Over Argentine President Milei Amid Controversial Cryptocurrency Promotion

February 21, 2025
Smart Money

Impeachment Calls Emerge for Argentine President Javier Milei Over Cryptocurrency Controversy

Buenos Aires, Argentina – Argentine President Javier Milei is under intense scrutiny as calls for impeachment arise alongside legal action against him, following a controversial promotion of cryptocurrency on social media. The situation has escalated significantly since Milei’s announcement regarding a digital currency known as $LIBRA.

Promotion and Market Reaction

On Friday, President Milei took to the platform X, previously known as Twitter, to promote the $LIBRA coin, claiming it would aid in funding small businesses and start-ups in Argentina. He included a link for purchase, which led to an immediate surge in the coin’s value. However, within hours, Milei deleted the post, and the cryptocurrency subsequently plummeted in value, costing many investors a substantial loss.

Responses across social media were swift, with some users accusing Milei of engaging in a "rug pull." This term refers to a deceptive practice where promoters attract buyers, only to cease trading and abscond with the raised funds. Critics noted that the link to purchase $LIBRA included a phrase that Milei frequently uses in his speeches, suggesting a personal connection to the venture.

Legal Actions and Impeachment Proceedings

Opposition members in Congress have indicated they will initiate impeachment proceedings against Milei, viewing this incident as a severe breach of trust and responsibility. Legal representatives took action on Sunday, filing fraud complaints in Argentina’s criminal court, citing the significant losses suffered by investors as a result of the president’s promotion of the cryptocurrency.

Jonatan Baldiviezo, one of the plaintiffs involved in the legal complaints, expressed concerns about Milei’s role in the incident. He told the Associated Press, “the crime of fraud was committed, in which the president’s actions were essential.”

Milei’s opposition has wasted no time in leveraging this controversy for political gain. Former President Cristina Fernández de Kirchner labeled him a “crypto scammer” in a post that reached 6.4 million users. Additionally, the main opposition coalition announced plans to file for impeachment, characterizing the affair as an "unprecedented scandal."

Government Response

In light of the growing controversy, the Argentine presidential office issued a statement on Saturday. They clarified that the post’s removal was a preventive measure to avoid further "speculation" given the initial public reaction to the coin’s launch. The office emphasized that Milei had no involvement in the development or management of the cryptocurrency, and stated that the government’s Anti-Corruption Office would conduct an investigation to ascertain if any wrongdoing occurred, including actions taken by Milei himself.

Esteban Paulón, a prominent member of the opposition Socialist Party, supported the impeachment discourse, claiming that such actions by a sitting president warrant strict consequences.

As the country moves forward, the implications of this incident extend beyond Milei’s presidency, stirring discussions about regulation and transparency in the burgeoning cryptocurrency market. The outcome of this political drama will likely play a significant role in shaping Argentina’s political landscape and the future of cryptocurrency within the nation.