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Argentine President Javier Milei Faces Impeachment Calls Over Cryptocurrency Promotion
Argentine opposition lawmakers have called for President Javier Milei’s impeachment following his promotion of a cryptocurrency that collapsed, wiping out $4.4 billion in market value and raising questions about presidential conduct.
Controversy Surrounds the $LIBRA Token
The controversy began after Milei posted a recommendation for the $LIBRA token, causing the price to surge to nearly $5 before crashing within hours. The Solana-based token was purportedly designed to boost Argentina’s economy through small project funding but showed multiple red flags from inception.
On-chain analysis revealed a coordinated extraction of value by insiders, with the project team accumulating $107 million through sophisticated liquidity manipulation. Eight connected wallets gathered 57.6 million USDC and 249,671 SOL ($49.7 million) through various trading mechanisms, marking one of the fastest and largest collapses in meme coin history.
Red Flags and Lack of Transparency
The project’s hastily created website featured only a basic Google Form for funding applications and lacked fundamental tokenomics information or ownership transparency. These red flags have raised concerns about the legitimacy of the project and the potential for a “rug pull” scheme, where developers artificially inflate a token’s value through legitimate investments before liquidating their positions.
Argentina’s Fintech Chamber Weighs In
Argentina’s fintech chamber has acknowledged the possibility of a “rug pull” scheme, highlighting the need for greater scrutiny and oversight in the cryptocurrency market. The incident has drawn Argentina’s cryptocurrency governance under the spotlight and raised concerns about presidential judgment in digital asset matters.
Presidential Involvement and Backlash
Milei attempted to distance himself from the controversy, deleting his promotional post and claiming ignorance of the project’s details. However, opposition members view his involvement as potentially impeachable conduct. In a statement, Milei characterized the backlash as an attempt by “filthy rats of the political caste” to undermine his presidency.
“I published a tweet, as I have done many times before, supporting a supposed private entrepreneurship, with which I obviously have no connection. I was not familiar with the details of the project, and after becoming familiar with it, I decided not to continue supporting it…”
Similarities to Trump’s Crypto Endorsements
Milei’s aggressive approach to slashing government spending and his endorsement of the $LIBRA token have drawn comparisons to President Donald Trump’s efforts to decrease federal regulations and funding. Trump’s critics have also taken issue with his endorsement of meme coins and the conflicts of interest that arise from his crypto profits — all while investors suffer billions in losses.
As the situation continues to unfold, it remains to be seen how this controversy will impact Milei’s presidency and the broader cryptocurrency market. For more news and updates on cryptocurrencies and fintech, visit Global Crypto News.
