Milei's LIBRA Endorsement Sparks $107M Crypto Scandal, Impeachment Calls

Argentine President Javier Milei is facing potential impeachment proceedings following allegations of involvement in a $107 million pump-and-dump scheme involving the LIBRA cryptocurrency. The scandal has sparked legal complaints and calls for his removal from office.

Milei's endorsement of LIBRA on February 14 led to a rapid surge in the token's price, with its market cap reaching $4.56 billion within hours. However, the token's value plummeted by over 94% within 11 hours after Milei deleted his post. Blockchain analysts raised concerns about the project's legitimacy, noting that its website was created just hours before launch and that 82% of its token supply was unlocked and sellable from the start.

On-chain data revealed that eight insider wallets linked to the project cashed out over $107 million in liquidity roughly three hours after the token started trading. This included massive withdrawals of 57.6 million USDC and 249,671 Solana, leaving retail investors with worthless tokens.

The LIBRA scandal has prompted opposition lawmakers to call for Milei's impeachment. Leading the charge is Leandro Santoro, who described the fiasco as an "international embarrassment" and insisted that the president must be held accountable. Milei's office admitted that he met with representatives of KIP Protocol, the Web3 firm linked to LIBRA, on October 19, 2023, and held a separate meeting with crypto entrepreneur Hayden Mark Davis on January 30. Despite these connections, Milei insists he had no direct role in the project's development or launch.

In response to the backlash, Milei has requested an investigation by the Anti-Corruption Office into all government officials, including himself. The investigation aims to determine if "companies or individuals" linked to the KIP Protocol project have committed a crime. The outcome of these legal proceedings will have significant implications for Milei's presidency and Argentina's political landscape.