Opposition in Argentina Threatens to Remove President Over Cryptocurrency Crash
7
Politics
February 16, 2025 08:03
buenos aires - Opposition members in the Argentine Congress threaten impeachment of President Javier Milei following a cryptocurrency crash.
Opposition Threatens Impeachment
Argentine President Javier Milei faced impeachment threats after promoting the cryptocurrency $LIBRA on social media, causing a significant crash in its value. The project, endorsed by Milei, aimed to boost the Argentine economy by supporting businesses. However, the coin's value plummeted by 95%, resulting in losses for over 40,000 investors.
'Rug Pull' Scam
Experts, including Argentina's fintech industry association, labeled the incident as a 'rug pull' scam. Developers, often aided by celebrities, hype a cryptocurrency to inflate its value before selling off their shares, causing unsuspecting investors to suffer losses. Insider reports suggest that individuals affiliated with the $LIBRA project sold $107 million worth of coins.
Impeachment Proceedings
The opposition coalition, Unión por la Patria, announced plans to initiate impeachment proceedings against the ultra-liberal president over his alleged involvement in a crypto scam. Former President Cristina Fernández de Kirchner dubbed Milei a 'crypto fraudster,' while Axel Kicillof accused him of endorsing fraudulent activities.
President's Response
Following the market crash, Milei removed his promotional post and disassociated himself from the project, claiming ignorance of its details. Despite his assertions, supporters and critics alike criticized Milei for his misstep. The President's office revealed that Milei had met with KIP Protocol, the company behind the cryptocurrency, in October, emphasizing his role in promoting job creation and investments.
Investigations and Taskforce
Milei initiated an anticorruption investigation involving government officials, including himself, to determine any wrongdoing. The presidential office established a task force to probe the coin's launch, with findings to be submitted to the judiciary for further action.