Lawmakers in Argentina are pushing to impeach President Javier Milei after his brush with a crypto scandal. According to Reuters, the scandal, associated with the promotion of a crypto token, wiped billions in investor funds overnight.
Milei, who has been hailed for his policies since he was elected the leader of the South American country, endorsed the $LIBRE meme coin late on Friday. As per usual with all meme coins, the endorsement drew in investors, pushing the price of the token from $0.006 to $5. Hours later, the token collapsed, triggering outrage and accusations of promoting a rug pull.
Lawmakers in Argentina plot Milei’s impeachment
After the collapse of the token, Milei attempted to reduce his share of the blame, moving fast to delete the post where he endorsed the token. However, it seems that the move will not be enough as opposition leaders, who are already critical of his economic moves, want him out. “This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” said Leandro Santoro, a member of the opposition coalition, on Saturday.
Milei’s endorsement of the token had been seen as presidential backing, leading investors to pour money into the token. According to a statement by the Fintech chamber in Argentina, the token had the markings of a rug pull, where the developers of a token attempt to pump the price of the token before taking out the cash and leaving the project worthless, and the buyers in financial ruin.
After deleting his endorsement, Milei distanced himself from the project, noting that he was not informed about the specifics of the project. “I was not aware of the details of the project, and once I found out, I decided to not continue giving it publicity,” he said. Now, the only problem that remains is that his opponents are not impressed with his post.
The company behind the project, KIP protocol, has also come out to claim that Milei was never involved in the $LIBRE project. The company mentioned that the token was a private enterprise, noting that it had no ties to the Argentina government. “President Milei was not and is not involved in the development of this project,” KIP Protocol said on X.
The shouts of impeachment are gaining serious momentum, with the Congress and lawmakers in Argentina demanding to know the people who profited from the rise and fall of the token. According to Santoro, even though Milei was not involved, his endorsement created a trap for investors. Former president Cristina Fernandez de Kirchner also gave her opinion on the issue. “Thousands who trusted him lost millions, while many made fortunes due to privileged information,” she said on Saturday.
Milei launches investigation into LIBRA
According to the Argentine presidency statement on X, an investigation has been launched into LIBRA, as the president continues to distance himself from the project. In the statement, the handle mentioned that Milei had a meeting with KIP Protocol officials in October 2024, where they told him about Viva la Libertad, their blockchain-based initiative. In the meeting, the company mentioned plans to finance private ventures in the country using Blockchain technology.
Javier also defended his endorsement of the KIP Protocol, saying: “The President shared a post on his accounts announcing the launch of the KIP Protocol project, just as he does daily with many entrepreneurs who want to launch a project in Argentina to create jobs and get investments.”
The Anti-Corruption Office has embarked on an investigation into the actions of government officials to determine if improper conduct was carried out in the process. “All information gathered during the investigation will be handed over to the courts to determine whether any of the companies or individuals linked to the KIP Protocol project committed a crime,” the statement read.