Argentina’s President Under Pressure as Crypto Market Collapses
Reuters Argentine President Javier Milei is currently facing calls for his impeachment and legal action alleging fraud due to his promotion of cryptocurrency on social media. On Friday, Milei posted about the $LIBRA coin on X (formerly Twitter), stating it would assist small businesses and startups in funding their operations. He also shared a link to purchase the cryptocurrency, which resulted in its price rapidly increasing.
However, within just a few hours of posting, Milei removed his message from social media platforms. As a result, the value of the cryptocurrency plummeted, leaving investors with significant financial losses. Some opposition members of Congress are planning to initiate impeachment proceedings against him over this incident.
In addition to these political pressures, lawyers have filed complaints accusing Milei and others involved in fraud at Argentina’s criminal court on Sunday. The term “rug pull” has been used by some online observers to describe the situation where cryptocurrency promoters attract buyers before ceasing trading activity and pocketing the money collected from sales.
Critics pointed out that the link shared for purchasing coins referenced a phrase commonly used in Milei’s speeches, adding further suspicions of impropriety. Argentinas presidential office responded by clarifying that their decision to remove the post was meant to prevent speculation following public reactions related to cryptocurrency launches. They emphasized that Milei did not have any involvement in developing the cryptocurrency.
The government’s Anti-Corruption Office is reportedly conducting an investigation to determine if anyone, including the president himself, acted improperly. Jonatan Baldiviezo, one of those who filed a legal complaint against Milei and others involved with the crypto fraud case told Associated Press that “the crime of fraud was committed in which the actions of President Javier Milei were essential.”
Milei’s political opponents have seized upon this opportunity to criticize him harshly. Former President Cristina Fernndez de Kirchner, now in opposition, has been particularly vocal on social media platforms, referring to him as a “crypto scammer” and posting about it over 6 million times.
The countrys main opposition coalition also plans to file an impeachment request against Milei, calling the incident an unprecedented scandal. Esteban Pauln of the opposition Socialist Party has stated in one of his X posts that he will seek to initiate proceedings for impeaching the president as well.
