Argentina's President Javier Milei might be impeached for promoting cryptocurrency
What's the story
Argentina's President Javier Milei may be impeached after his endorsement of a cryptocurrency caused massive losses to investors. The controversy started when Milei tweeted about the $LIBRA cryptocurrency, calling it a private initiative to strengthen Argentina's economy. His tweet, posted to his 3.8 million followers on X, contained a link to the project and triggered a massive spike in the cryptocurrency's value before it plummeted.
Damage control
Milei distances himself from $LIBRA project
Following the crash, Milei deleted his post and distanced himself from the $LIBRA project. He said on X that he was unaware of its details and chose to stop promoting it after learning more about it. However, this has not quelled the uproar as opposition parties have accused him of endorsing a scam and are calling for his impeachment.
Probe initiated
Investigation launched into $LIBRA cryptocurrency controversy
In light of the allegations, the presidency has launched an investigation into the incident. The Anti-Corruption Office has been brought in to determine if any wrongdoing occurred. The $LIBRA cryptocurrency saw a meteoric rise and fall in value within hours of Milei's tweet. Initially sitting in a few digital wallets at nearly nothing, its value surged to nearly $5 before crashing to cents.
Financial fallout
$LIBRA's market cap loss and insider cashouts
The Kobeissi Letter reported anomalies like the website's creation just hours before launch and restricted domain statuses. They also revealed that insiders cashed out $87.4 million within three hours of launch. This incident has sparked widespread debate and scrutiny over Milei's actions and their implications for Argentina's political landscape.
Political repercussions
Political fallout and defense of Milei's actions
The political fallout from the incident has been intense. Opposition figures like Cristina Kirchner have labeled Milei a "crypto-scammer." However, Congressman Diego Santilli dismissed impeachment calls as an attempt to overthrow the President. Security Minister Patricia Bullrich defended Milei's right to express opinions without implying endorsement. Despite the controversy, Milei maintains he has no connection with the company behind $LIBRA and plans to address this issue publicly in due course.