Javier Milei, president of Argentina, at the G20 Summit Rio de Janeiro 2024. Buda Mendes/Getty Images/File
Argentina’s President Javier Milei is under fire after endorsing a cryptocurrency that skyrocketed and then crashed, leaving investors in financial turmoil. The controversy has sparked impeachment calls and a national scandal.
What Happened?
Argentine President Javier Milei is facing intense backlash after promoting a little-known cryptocurrency, $LIBRA, on his X (formerly Twitter) account. The cryptocurrency’s value surged following his endorsement but collapsed within hours, causing significant losses for thousands of investors.
Milei, a libertarian leader known for his pro-crypto stance, tweeted to his 3.8 million followers: “This private project will be dedicated to encouraging the growth of the Argentine economy.” The post included a link to the $LIBRA cryptocurrency project. However, hours later, Milei deleted the tweet and claimed he had no ties to the initiative.
In a follow-up post, Milei stated, “I was not aware of the details of the project and after having become aware of it, I decided not to continue spreading it.” His team later described the incident as a mistake.
The Fallout: Impeachment Calls and Investigations
The controversy has ignited a political firestorm in Argentina. The opposition has accused Milei of promoting a scam, leading to calls for his impeachment. The Union for the Homeland coalition announced plans to move forward with an impeachment request, citing improper conduct.
In response, Milei’s administration has launched an internal investigation. The presidency released a statement saying, “President Javier Milei has decided to immediately involve the Anti-Corruption Office to determine whether there was improper conduct on the part of any member of the national government, including the president himself.”
How the Cryptocurrency Market Reacted
The $LIBRA cryptocurrency experienced extreme volatility following Milei’s tweet:
- Initial Value: Nearly zero at launch.
- Price Surge: Rose to almost $5 after Milei’s endorsement.
- Crash: Plummeted to cents within three hours.
Crypto security expert Pablo Sabbatella explained that the token was created minutes before Milei’s tweet and was likely part of a “pump and dump” scheme. Large holders, or “whales,” bought the cryptocurrency at extremely low prices, sold during the surge, and made millions in profits. Sabbatella noted that one account earned over $87 million in just two hours.
Political Reactions
The scandal has deepened Argentina’s political divide:
- Opposition Criticism: Accuses Milei of promoting a fraudulent scheme.
- Government Defense: Security Minister Patricia Bullrich defended Milei, stating, “The president has the freedom of expression to raise the issues he wants.”
Congressman Diego Santilli, a Milei ally, dismissed impeachment calls as an attempt to “overthrow” the president.
Key Takeaways
- Cryptocurrency Risks: The incident highlights the dangers of volatile crypto markets and the influence of high-profile endorsements.
- Political Turmoil: Milei’s presidency faces its biggest crisis yet, with impeachment looming.
- Investor Caution: Investors are urged to exercise caution when dealing with new or unverified cryptocurrencies.
What’s Next?
The Anti-Corruption Office’s investigation will determine whether Milei or his team acted improperly. Meanwhile, the National Securities Commission is expected to review the incident and consider regulatory
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