Crypto Scandal Sparks Impeachment Drive Against Argentina’s President

Argentine lawmakers have launched a movement to impeach President Javier Milei following a cryptocurrency-related controversy that led to the loss of millions of dollars from investors.

According to reports, the scandal erupted after Milei, known for his support of free-market policies, endorsed the $LIBRE meme coin on social media last Friday. His tweet drove the coin’s price from $0.006 to nearly $5 within hours, attracting numerous buyers. However, just six hours later, its value plummeted to $0.84, leaving investors devastated.

This sudden crash triggered allegations of a rug pull, where the creators artificially inflate the price, then profit by selling their holdings while leaving investors with worthless assets. The backlash was swift, with political leaders from the opposition coalition calling for Milei’s impeachment. Leandro Santoro, a prominent opposition figure, stated the scandal had shamed the nation and demanded action against the president.

Despite removing the post soon after, Milei attempted to distance himself from the project, claiming he was unaware of its details before the endorsement. However, critics were skeptical of his defense. The company behind the coin, KIP Protocol, initially denied any connection to the president but later backtracked, revealing that the launch and market activities were managed by a separate entity.

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The scandal is gaining traction in Congress, with lawmakers demanding transparency about the profits made during the token’s rise and fall. Former president Cristina Fernández de Kirchner also spoke out, accusing the government of allowing insiders to profit at the expense of ordinary investors.

In response, Milei’s office has launched an official investigation into the incident. The Argentine president acknowledged meeting with KIP Protocol representatives and emphasized his routine promotion of entrepreneurial projects. The government’s Anti-Corruption Office and a newly established investigation task force will probe the matter, aiming to uncover any criminal activities tied to the cryptocurrency’s sudden volatility. The findings will be submitted to the courts for further action.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.