In a shocking turn of events, Argentine President Javier Milei faces fraud charges and impeachment calls following his involvement in the collapsed cryptocurrency project $LIBRA. The scandal erupted after Milei publicly endorsed the token on social media, claiming it would strengthen Argentina's economy by supporting local businesses.
The token's market capitalization skyrocketed to US$4.5 billion following the presidential endorsement. However, the project imploded when eight wallets connected to insiders sold US$107 million worth of tokens, triggering a massive 94% price crash within hours.
A group of prominent Argentine professionals, including former central bank chief Claudio Lozano, filed fraud charges against the president. Opposition politician Leandro Santoro demanded impeachment proceedings, stating the scandal "embarrasses us on an international scale."
The project's origins trace back to Julian Peh, founder of KIP Protocol, who reportedly met Milei at a Buenos Aires crypto forum before joining Argentina's Blockchain Committee. Investigators found concerning elements in the token's structure - no locked tokens and over 80% of supply controlled by insiders.
Milei attempted to distance himself from the project after its collapse, deleting his earlier endorsements on social media. Jonathan Baldiviezo, leading the fraud charges, told the Associated Press that "the president's actions were essential" in what he described as an "illicit association."
The case awaits judicial review as Argentina grapples with this unprecedented situation of a sitting president facing criminal charges over cryptocurrency promotion. The scandal adds another layer of complexity to Argentina's already challenging economic landscape.
This development marks one of the highest-profile cryptocurrency fraud cases involving a head of state, raising questions about the intersection of political power and digital asset promotion.