Argentine President Faces Impeachment Calls Following Crypto Scandal
The Argentine political landscape is in turmoil as lawmakers push for the impeachment of President Javier Milei in the wake of a cryptocurrency scandal that has left investors reeling. According to a report from Reuters, the scandal unfolded when President Milei endorsed a meme coin called $LIBRE on social media platform X, causing its value to skyrocket from $0.006 to nearly $5 per token in a matter of hours.
However, the euphoria was short-lived as $LIBRE’s value quickly plummeted to $0.84, leading to accusations of a rug pull – a scheme in which the creators of a token artificially inflate its price before cashing out and leaving investors in financial distress. The fallout from the scandal has been swift, with opposition leaders calling for Milei’s removal from office.
Leandro Santoro, a prominent member of the opposition coalition, condemned the President’s actions, stating, “This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president.” Milei has since distanced himself from the $LIBRE project, claiming ignorance of its details and stating that he decided to cease promoting it once he became aware.
The company behind $LIBRE, KIP Protocol, initially denied any involvement from President Milei, asserting that the project was a private enterprise with no ties to the Argentine government. However, they later revised their statement, revealing that the launch and market-making of the token were managed by Kelsier Ventures, a company led by Hayden Davis. KIP Protocol also reported receiving threats following the scandal.
As calls for impeachment gain traction in Congress, lawmakers are demanding an investigation into who profited from the volatile token’s rise and fall. Former President Cristina Fernández de Kirchner criticized Milei, stating, “Thousands who trusted him lost millions, while many made fortunes due to privileged information.”
In response to the growing crisis, the Argentine presidency has announced an official investigation into the $LIBRE scandal. President Milei has met with KIP Protocol officials and defended his endorsement of the project as a routine show of support for local entrepreneurs. The Anti-Corruption Office will review the actions of government officials, including Milei, to determine if any misconduct occurred.
A dedicated Investigation Task Unit has been established to scrutinize every aspect of the scandal, with all findings to be handed over to the courts for further action. The unfolding events have sent shockwaves through Argentina’s political and financial spheres, underscoring the risks associated with the volatile world of cryptocurrencies.