Argentine President Javier Milei Faces Impeachment Calls Over Cryptocurrency Controversy
BUENOS AIRES, Feb 15 (Reuters) – Argentine President Javier Milei could be facing an impeachment trial in Congress following a controversial endorsement of a cryptocurrency that dramatically collapsed shortly after his promotion, according to opposition lawmakers.
On February 14, the libertarian leader took to social media platform X (formerly Twitter) to recommend the little-known cryptocurrency known as $LIBRE. His endorsement initially sparked a significant surge in the digital currency’s value, which reached nearly $5 per coin. However, the excitement was short-lived, as the value plummeted to below $1 just hours later.
The swift rise and fall of $LIBRE raised red flags among financial experts, with Argentina’s fintech chamber suggesting that it exhibited characteristics of a “rug pull.” This type of scam involves developers soliciting investments into a cryptocurrency, artificially inflating its value, only to subsequently withdraw their assets, leaving investors with devalued tokens.
“This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” stated lawmaker Leandro Santoro, a member of the opposition coalition. Santoro’s remarks reflect the growing concerns among opposition members about Milei’s handling of cryptocurrency matters and the implications for investor confidence in Argentina.
In response to the uproar, President Milei quickly deleted his post endorsing $LIBRE. He later expressed regret for the situation, stating, “I was not aware of the details of the project, and once I found out, I decided to not continue giving it publicity.” His defense points to a lack of knowledge about the cryptocurrency project, positioned as a reason for his abrupt withdrawal of support.
The incident has not only raised questions about Milei’s judgment but has also ignited a broader dialogue around cryptocurrency regulation in Argentina, a country grappling with significant economic challenges and inflation.
As the opposition prepares to take further action, the political landscape in Argentina may face turbulence in the coming days. The potential impeachment trial could signal a serious conflict between the Milei administration and opposition parties keen on holding the president accountable.
Reporting by Jorge Otaola; Writing by Kylie Madry; Editing by Chizu Nomiyama
Our Standards: The Thomson Reuters Trust Principles.
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