• Fraud accusations and impeachment demands arise after LIBRA token crash linked to Milei.
• Milei refutes LIBRA endorsement, downplays impact on genuine investors.
• LIBRA controversy triggers legal investigations and Argentina stock market decline.

President Javier Milei of Argentina is under intense scrutiny due to his connection to the LIBRA token debacle. This cryptocurrency, launched as part of the Libertad project, experienced a rapid surge in market capitalization to $4.56 billion following Milei’s social media promotion. However, the token’s value plummeted by 94% soon after he removed his post, resulting in substantial losses for investors.

Javier Millei said in a TV interview: I didn’t promote it, I shared it. “Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most. The vast majority of investors are Chinese and American.” Those who got involved knew the risks very well—they are…

— Wu Blockchain (@WuBlockchain) February 17, 2025

The abrupt token collapse has ignited allegations of a pump-and-dump scheme, leading to numerous fraud lawsuits against Milei. Opposition figures are pushing for his impeachment, asserting he misled the public and caused financial damages.

Milei Rejects Endorsement Claims, Defends His Actions

Milei has denied endorsing the LIBRA token, stating he merely shared publicly available information. He insists the matter is a private financial issue without government involvement.

Despite reports suggesting 44,000 investors were impacted, Milei contends that a majority were automated accounts. He claims only about 5,000 genuine investors were affected, with a small number being Argentinian citizens. He asserts most traders were based in China and the U.S. Despite criticism, Milei maintains his actions were in good faith and he has no affiliation with the token’s creators.

Escalating Political Repercussions and Market Fallout

The LIBRA issue has sparked investigations from judicial and regulatory authorities. Federal Judge María Servini has initiated a legal investigation, and the anti-corruption office is conducting its own inquiry. The scandal has also destabilized Argentina’s financial markets, contributing to a 5% decrease in the S&P Merval stock index.

KIP Protocol, a Web3 company associated with the Libertad project, has stated it had no role in the token’s launch. Despite Milei’s defense, the political consequences are mounting. Opposition leaders are advocating for his removal, accusing him of neglecting investor protection. As investigations progress, this incident presents a significant challenge to Milei’s leadership and his administration’s commitment to transparency.
Source: cryptonewsland.com