Opposition lawmakers in Argentina said Saturday that President Javier Milei could face impeachment after promoting a cryptocurrency that saw its value plunge in just a few hours.
On Friday night, Milei posted on social media platform X recommending the cryptocurrency $LIBRE, which is little known in the market. After the announcement, the asset quickly appreciated, reaching almost US$5.
However, a few hours later, the cryptocurrency suffered a sharp devaluation, falling to less than US$ 1. The episode generated reactions in the financial market and criticism from opposition parliamentarians.
Milei faces “rug pulling” accusations
Argentina’s Fintech Chamber has indicated that the case may be a case of a scheme known as a “rug pull.” This type of scam occurs when developers of a digital asset attract investors and inflate the value of the token. They then sell their holdings, causing the price to collapse.
Given the repercussions, deputy Leandro Santoro, from the opposition coalition, declared
“This scandal, which shames us on an international scale, forces us to launch an impeachment request against the president.”
Milei deletes post and denies involvement
After the backlash, Milei deleted the post promoting the cryptocurrency. According to local media, the post remained online for a few hours before being removed.
The president later stated that he had no knowledge of the details of the project. He also said that he removed the post as soon as he became aware of the situation:
“I didn’t know the details of the project and when I found out, I decided not to continue publicizing it.”