Opposition lawmakers in Argentina have raised the possibility of impeaching President Javier Milei after he promoted a cryptocurrency that rapidly lost value.
On Friday night, Milei posted on X recommending $LIBRE, a little-known crypto token. The price of the token surged to nearly $5 shortly after his post. Within hours, it dropped below $, Reuters reported.
Argentina Lawmaker Seeks Impeachment Over Crypto
Argentina’s fintech chamber suggested that the incident could be a "rug pull," a type of fraud where developers boost a cryptocurrency’s value before selling their holdings and abandoning the project.
“This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” said Leandro Santoro, an opposition lawmaker.
President Removes Post After Crypto Crash
Milei later deleted his post. Local media reported that it was online for several hours. The president said he removed it after learning more about the situation and denied any connection to the cryptocurrency.
“I was not aware of the details of the project and once I found out, I decided to not continue giving it publicity,” he said.
Argentina Embraces Cryptocurrencies amid Hyperinflation Crisis
Meanwhile, Argentina’s government has legalized Bitcoin and other cryptocurrencies for contract settlements and payments, as announced by Minister Diana Mondino last year.
This move is part of broader economic reforms to combat hyperinflation and a weakened economy. While the decree doesn’t directly mention cryptocurrencies, it allows individuals and businesses to choose payment methods, regardless of legal tender status, as reported by Finance Magnates.
