Argentine President Faces Major Trouble After Accusations of Cryptocurrency Scam

Argentine President Javier Milei is facing increasing political and legal scrutiny after promoting a cryptocurrency that plummeted in value immediately after he endorsed it. The controversy has led opposition lawmakers to call for his impeachment, and some lawyers have filed complaints against him for fraud. On Friday, Milei shared a post on X promoting the cryptocurrency $LIBRA, a digital token developed by KIP Protocol, aimed at boosting economic growth by supporting small businesses and startups. The post quickly attracted attention, with the value of the cryptocurrency soaring to nearly $5 per coin. However, within a few hours, its value plummeted to below $1, causing significant losses for many investors. The financial website Dexscreener reported millions of dollars in losses as a result of this. After the rapid fluctuations of cryptocurrencies, opposition lawmakers have expressed their concerns, calling this incident a 'rug pull,' a term used in the cryptocurrency world when developers attract investments, only to abandon the project, leaving investors worthless tokens. Legislator Leandro Santoro described this event as a scandal that embarrassed Argentina on the international stage and called for an impeachment request against Milei. Milei deleted the post immediately after it was published, claiming that he did not know the details of the project and deleted the authentication after learning about the situation. In a statement, he asserted, "I did not know the details of the project, and after being informed, I decided not to continue promoting it anymore." Although Milei denies it, the promotional program has caused legal action. Argentine lawyers, including Jonatan Baldiviezo, have filed a complaint of fraud, accusing the president of being complicit in a fraud conspiracy. Baldiviezo argues that Milei's actions have created conditions for fraud, as the value of cryptocurrency has been artificially inflated, resulting in financial losses for investors. He also alleges that the president violated the Public Ethics Law by promoting a project that turned out to be a scam. Legal complaints also highlight Milei's meeting with representatives of KIP Protocol, including Hayden Davis, at the presidential office. The presidential office clarified that Milei did not participate in the cryptocurrency development process but acknowledged that the meeting aimed to promote economic growth and attract investment to Argentina. When the legal procedures take place, the Milei government has pledged full cooperation with the investigations, with the Anti-Corruption Office reviewing any potential misconduct. Meanwhile, Davis, representing KIP Protocol, criticized Milei for withdrawing support and deleting advertising posts, stating that Milei's actions directly contributed to the collapse of the cryptocurrency. This incident has caused a political storm, with critics accusing the president of negligence and misuse of his platform, while supporters argue that the failure of the cryptocurrency project is due to external factors. The investigation is still ongoing and it is not yet known whether the president will face any legal consequences for his participation in the $LIBRA promotion program.