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A cryptocurrency endorsement by Argentine President Javier Milei has erupted into a major political crisis, triggering impeachment calls and criminal complaints against the controversial leader. On Friday evening, Milei promoted the $Libra cryptocurrency token to his 3.8 million X followers, claiming it would boost Argentina's economy by funding small businesses and entrepreneurs.
The token's value skyrocketed immediately after Milei's endorsement, climbing from near zero to approximately $5, before plummeting to less than $1. Argentina's fintech chamber suggested the incident could be a "rug pull" – a scheme where cryptocurrency values are artificially inflated before insiders dump their holdings, leaving other investors with worthless tokens.
Hours after his initial post, Milei deleted the endorsement, claiming he "was not aware of the details of the project." The federal prosecutor's office has launched an investigation to determine whether the president engaged in fraud, criminal association, or breached his duties. A group of lawyers filed criminal complaints on Sunday, alleging Milei was a "fundamental participant in the development, execution and planning of the mega-scam."
Opposition lawmakers have seized on the scandal. "This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president," declared opposition coalition member Leandro Santoro. Former president Cristina Fernández de Kirchner branded Milei a "crypto scammer," while Mexico's president Claudia Sheinbaum called the situation "extremely serious."
The presidential office has attempted to contain the damage, stating Milei had no involvement in the cryptocurrency's development and had instructed the anti-corruption office to investigate. Milei himself lashed out at critics, denouncing them as "filthy rats of the political caste" attempting to "take advantage of this situation."
Political analyst Marcelo García of Horizon Engage consultancy warns that the administration must provide a clear explanation to prevent a "credibility crisis that could discourage the largest investment community." The incident's timing is particularly problematic as it could damage Milei's reputation as an economic reformer and anti-corruption advocate ahead of midterm elections.
The scandal has drawn parallels to recent cryptocurrency controversies in the United States, including Donald Trump's launch of the $Trump memecoin last month, which experienced a similar surge and crash pattern.
As the investigations proceed, the incident threatens to undermine Milei's ambitious economic reform agenda and his standing as Argentina's political outsider promising to combat corruption and restore financial stability.
