Argentina President faces impeachment calls after LIBRE crypto crash

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Argentina’s president caught in crypto controversy

A questionable endorsement and market crash

On February 14, Milei posted on X, recommending the cryptocurrency $LIBRE. Following his endorsement, the token's value surged to nearly $5, only to crash below $1 within hours.

The Argentine fintech association suggested that the incident may be a case of a "rug pull"—a fraudulent scheme where developers artificially inflate a token’s price, attract investors, and then dump their holdings, leaving unsuspecting traders with losses.

Milei later deleted the post, which, according to media reports, remained online for several hours. In response to the scandal, the president claimed he had no prior knowledge of the token’s origins or financial mechanisms.

"I was not aware of the project's details, and once I found out, I decided to stop promoting it," Milei stated.

Political fallout and calls for impeachment

The sudden collapse of $LIBRE has sparked political turmoil. Opposition lawmaker Leandro Santoro, a member of the coalition opposing Milei’s government, has publicly called for impeachment proceedings.

"This scandal, which shames us on an international level, requires us to launch impeachment proceedings against the president," Santoro declared.

The incident has raised concerns over whether Milei or his administration had direct ties to the token’s developers or benefited from its promotion.

In response to mounting criticism, the Argentine Presidential Office has requested an official investigation by the country’s Anti-Corruption Office to determine whether any legal or ethical violations were committed.

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Suspicious links to LIBRE

A deeper investigation into LIBRE has revealed troubling details about its origins. Blockchain analytics firm Solayer traced the token’s creation to individuals allegedly linked to financial fraud in India, Coincu reported. Additionally, the developers behind the project have been connected to other questionable tokens, including MELANIA, ENRON, and OG.FUN, further fueling suspicions of potential money laundering.

Reports indicate that over $15 million related to $LIBRE was transferred through cryptocurrency platforms SideShift and FixedFloat, suggesting possible illicit financial activity.

A growing political crisis

The cryptocurrency scandal has cast a shadow over Milei’s leadership. The opposition is using the situation as further evidence of alleged governance failures. If the impeachment motion gains momentum, Milei could become the first Argentine president in years to face a congressional trial.

While Milei continues to distance himself from the controversy, the outcome of the investigation and congressional debates will determine whether this crypto scandal leads to long-term political consequences for his administration.

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