Javier Milei is at risk of impeachment after supporting the withdrawal of the 107 million dollar Libra blanket.

Argentine President Javier Milei is facing calls for impeachment after supporting a collapsed cryptocurrency project in a case analysts call a major internal fraud scheme. Libra coin (LIBRA) native to Solana began to rise on February 14, immediately after Milei posted about the project on X, formerly Twitter. His post, which has now been deleted, included a website and contract address for the token, described as a "private project" for the purpose of "encouraging the development of the Argentine economy."

Data from Dexscreener shows that the Libra token rose to a peak market capitalization of $4.56 billion at 10:30 PM UTC on February 14 before plummeting over 94% to a market capitalization of $257 million in just 11 hours since the token started trading on decentralized exchanges.

Milei may now face the risk of being charged after Argentina's financial technology department admitted that this could just be an act of concealing information. According to the report on February 16, opposition lawmaker Leandro Santoro told Reuters, "This scandal, which embarrasses us internationally, requires us to demand the impeachment of the president" . After this token collapsed on February 15, Milei made a statement about X, noting that he did not know the details of the project when he confirmed it and that he "has absolutely no connection" with the "private enterprise" that launched this token.

Milei also added that his political opponents will try to take advantage of this situation: "To the filthy rats of the political class who want to take advantage of this situation to cause harm, I would say that every day they assert the vileness of politicians and they make us more confident in kicking their asses." According to a statement dated February 16 by the Office of the President of Argentina, Oficina del Presidente, Milei has requested the Anti-Corruption Office to investigate all government members, including the president, for potential misconduct. This statement also reveals that Milei held a meeting with representatives of KIP Protocol on October 19, 2024 in Argentina, where the company informed him about the Libra blockchain project and the goal of sponsoring private projects in this country.

Milei also met with the mysterious cryptocurrency entrepreneur Hayden Mark Davis at Casa Rosada on January 30, who was introduced to the president as the infrastructure partner for the project. The statement added: "All information collected during the investigation will be transferred to the court to determine whether any company or individual related to the KIP Protocol project has committed a crime or not". The $4 billion collapse of Libra token certified by Milei: What you need to know Although Milei has retracted his initial testimony, at least eight internal wallets associated with the Libra group have withdrawn over 107 million dollars in cash. According to the intelligence company Lookonchain, this number includes 57.6 million USD Coin ( USDC) and 249,671 Solana ( SOL) worth $49.7 million:

According to data shared by Kobeissi Letter, the internal wallet started withdrawing funds from this token just three hours after its launch for trading, causing it to drop by more than 94%.

Other blockchain data companies have warned about the project's tokenomics even before the collapse. Blockchain analysis company Bubblemaps has warned about the flawed tokenomics of LIBRA, revealing that 82% of the supply has been unlocked and can be sold right from the start.

Furthermore, the project does not share preliminary information about its tokenomics, a major red flag for cryptocurrency traders. The demand of retail investors for memecoins endorsed by celebrities has increased since US President Donald Trump officially launched the memecoin Trump (TRUMP) on January 18, followed by the Melania Meme token (MELANIA) of First Lady Melania Trump on January 19 on the Solana network before his inauguration on January 20.