• Argentine President Javier Milei faces impeachment calls after endorsing the cryptocurrency LIBRA, which lost over 90% of its value within hours.
  • The collapse, wiping out over $4 billion, has raised concerns over potential fraud, with opposition leaders calling the incident an international embarrassment.

Argentine President Javier Milei is facing impeachment calls after endorsing a cryptocurrency called LIBRA, which quickly collapsed, wiping out billions in market value.

The digital asset, promoted as a private initiative to support small and medium-sized businesses, lost over 90% of its market capitalization within hours, raising concerns about potential fraud.

Milei promoted LIBRA in a now-deleted post on X, stating that while he had no personal financial stake in the project, it aimed to help businesses raise funds. The endorsement led to a surge in LIBRA’s market capitalization, reaching approximately $4.5 billion.

However, confusion arose over the legitimacy of his statement, with speculation about whether his account had been compromised or if he had been misled.

Five hours later, Milei removed the post, clarifying that he had not been fully informed about the project’s details. "I was not aware of the details of the project," he stated, adding that he would no longer promote it.

The token’s value plummeted following his retraction, with reports from data sources Kobeissi Letter and Bubblemaps indicating that insiders cashed out $87.4 million worth of tokens. The crash erased over $4 billion in market capitalization.

Argentina’s fintech chamber suggested that the incident could be a case of a “rug pull,” a fraudulent scheme where developers abandon a project after profiting from initial investments.

The political fallout has been swift. Opposition lawmaker Leandro Santoro called for Milei’s impeachment, citing the scandal’s impact on Argentina’s global reputation.

"This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” Santoro said Saturday, according to Reuters.

The controversy has intensified scrutiny of cryptocurrency regulations in Argentina, as well as the role of public officials in endorsing financial products.

Edited by Harshajit Sarmah