Argentina’s president, Javier Milei, is being threatened with impeachment following his promotion of a cryptocurrency coin that rapidly appreciated before collapsing.
Milei is being accused of participating in a scam, an allegation he denies. The controversy stems from the president’s recent announcement on the social media platform X about a new crypto project. The post was active for only a few hours before it was deleted.
“This private project will be dedicated to encouraging the growth of the Argentine economy,” he wrote, alongside a link to the $LIBRA cryptocurrency project, per CNN.
Later, the president distanced himself from the initiative.
“I was not aware of the details of the project and after having become aware of it I decided not to continue spreading it,” he said.
Milei has gained prominence for the aggressive cost-cutting measures he implemented in Argentina, which helped effectively eliminate the country’s deficit for the first time in more than 100 years. His policies have even been compared to those of the Department of Government Efficiency.
“The example you are setting with Argentina will be a helpful model for the rest of the world,” Musk posted on X in September 2024.
On Saturday, the Argentine government announced it would investigate the crypto-promotion allegations.
“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,” the presidency said, per CNN.
The cryptocurrency was initially launched at a price hovering near zero. Following Milei’s post, the price skyrocketed to nearly $5 before dropping below $1 in under three hours, losing over 90% of its value.
Argentina’s fintech chamber said Milei’s actions could constitute a so-called “rug pull,” where developers hype a cryptocurrency at launch, driving the price higher, before quickly dumping their typically large position, sending the value spiraling.
“This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” said lawmaker Leandro Santoro, a member of the opposition coalition, per USA Today.