Argentine President Javier Milei is confronting impeachment demands following his promotion of the cryptocurrency $LIBRA, which experienced a rapid surge and subsequent collapse, leading to significant investor losses.
On February 14, 2025, Milei endorsed $LIBRA on his social media platforms, describing it as a private initiative aimed at bolstering Argentina’s economy. This endorsement led to a swift increase in the cryptocurrency’s value, reaching nearly $5 per unit, before plummeting by 90% within hours.
The abrupt decline has resulted in financial losses for approximately 40,000 investors, with estimates suggesting total losses around $250 million.
In response, opposition lawmakers have filed over 100 complaints against Milei in the country’s Supreme Court, accusing him of participating in a fraudulent scheme. The controversy has been dubbed “Cryptogate” by local media.
President Milei has denied any wrongdoing, stating he had no financial ties to the creators of $LIBRA and that his promotion was intended to support private projects contributing to national development. He has called for the Anti-Corruption Office to investigate the matter to determine if any misconduct occurred within his administration.
The scandal has also impacted Argentina’s financial markets, with the benchmark S&P Merval stock index dropping 5.6% following the incident.
Additionally, the U.S. Federal Bureau of Investigation has joined the investigation due to complaints from American investors affected by the collapse.
Entrepreneur Hayden Mark Davis, associated with the creation of $LIBRA, has claimed that the cryptocurrency’s downfall was due to Milei’s sudden withdrawal of support, which allegedly triggered panic selling among investors.
As the investigation progresses, the political and financial ramifications of this scandal continue to unfold, casting a shadow over President Milei’s administration and Argentina’s economic stability.
