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Argentina’s President Javier Milei is facing mounting pressure after promoting a controversial cryptocurrency that surged in value before crashing within hours, prompting accusations of fraud and sparking calls for impeachment from opposition lawmakers.
On February 14, 2025, Milei shared a post on the social media platform X recommending a little-known crypto token called ‘$LIBRA.’ The cryptocurrency quickly soared to nearly $5 before plummeting to under $1, raising suspicions of a “rug pull” scam an illicit practice in which developers artificially inflate the value of a cryptocurrency, sell their holdings, and abandon the project.
The incident has sent shockwaves across Argentina, with critics questioning Milei’s role in the promotion and whether he was aware of the potential risks involved. Opposition lawmaker Leandro Santoro condemned the situation, calling it a national embarrassment and demanding the launch of impeachment proceedings against the president. “This scandal requires us to launch an impeachment request against the president,” Santoro said, reflecting growing discontent among critics.
In response to the backlash, Milei deleted his post and issued a statement denying any direct involvement with the cryptocurrency project. He clarified that he was not aware of the details behind the token’s promotion and decided to retract his endorsement once he became aware of the situation. “I was not aware of the details of the project, and once I found out, I decided not to continue giving it publicity,” the president stated.
The controversy comes at a delicate time for Argentina, as the country has made strides to integrate cryptocurrency into its economy. In 2024, Argentina legalized Bitcoin and other cryptocurrencies for use in contract settlements and payments in an effort to address the ongoing hyperinflation crisis. However, this latest incident has raised doubts about the stability of the country’s growing crypto market and prompted fears of fraud.
The Argentine presidency announced an investigation into the matter, with the Anti-Corruption Office tasked with determining if any improper conduct occurred, including by the president himself. Milei’s office emphasized that the president had not participated in the development of the cryptocurrency, but the investigation is expected to probe the depth of his involvement in promoting it.
Economists and critics have also weighed in on the situation. Javier Smaldone, a prominent digital influencer, labeled the cryptocurrency launch as a “global scam,” citing reports of around $107 million in profits from the project. Former president Cristina Kirchner even accused Milei of being a “crypto-scammer,” further fueling public distrust.
As the investigation continues, opposition lawmakers are pushing for a special inquiry to uncover the full extent of Milei’s role in the scandal and determine whether his actions warrant further legal or political consequences. The outcome of this inquiry could have significant implications for the president’s future, as critics continue to demand accountability for the controversial promotion of the ill-fated cryptocurrency.
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