Argentinian President Javier Milei is under federal investigation after he endorsed a cryptocurrency that collapsed hours later, with opposition politicians calling for impeachment.
Milei said on X on Friday that the cryptocurrency coin $LIBRA would boost the country’s economy “by funding small businesses and startups”. $LIBRA’s value surged from near zero to US$5 after his comments, and then quickly dropped to less than $1 once Milei deleted his post.
“I was not aware of the details of the project and once I found out, I decided to not continue giving it publicity,” said Milei.
Eight buyers received most of the coin’s US$4.5 billion market capitalisation after the coin’s value fell, according to the Buenos Aires Herald.
Argentinian federal judge Maria Servini has been appointed to investigate. More than 100 complaints were filed in Argentina’s courts about the incident, local media reported.
“We denounce Milei as being part of an illicit association that organized a scam with the $LIBRA cryptocurrency that simultaneously affected more than 40,000 people with a loss of more than $4 billion,” said non-governmental organisation Observatorio del Derecho a la Ciudad, which filed one major fraud complaint.
Milei said his government’s Anti-Corruption Office would also investigate his conduct.
Opposition politicians have also called for Milei’s impeachment. Lawmakers from Union for the Homeland, Argentina’s main opposition coalition, said they will soon introduce an impeachment request.
“Milei’s participation in a crypto fraud crime is extremely serious. It is a scandal without precedent,” lower house members of Union for the Homeland said on X. “Our bloc of National Deputies decided to move forward with the presentation of an impeachment request against the nation’s president.”
Argentina’s Socialist Party also said it would introduce articles of impeachment. “The president must come to Congress. He cannot self-investigate,” said Socialist lower house member Esteban Paulón.
