Argentina’s Javier Milei Faces Impeachment Threat Over $107M LIBRA Scam

Argentine President Javier Milei is facing pressure as opposition lawmakers push for his impeachment. The calls follow his endorsement of a collapsed cryptocurrency project, Libra, with analysts labeling it an insider scam.

Meanwhile, the situation has sparked widespread debate in Argentina over regulatory oversight. Many are also questioning the role of government officials in cryptocurrency endorsements.

Opposition Lawmakers Seek Milei’s Impeachment

The controversy centers around the Solana-based Libra (LIBRA) token, which saw a surge in value on February 14, shortly after Milei promoted it on X (formerly Twitter). His now-deleted post provided the token’s website and contract address, presenting it as a private initiative aimed at strengthening Argentina’s economy.

Following his endorsement, the token’s market capitalization soared to $4.56 billion at its peak at 10:30 p.m. UTC on February 14. However, within 11 hours, its value plummeted by over 94% to $257 million, according to Dexscreener data.

The sharp decline fueled concerns that the project was a rug pull, with the Argentine Fintech Chamber acknowledging the possibility. As the controversy grew, opposition lawmaker Leandro Santoro called for Milei’s impeachment, stating:

“This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president.”

Milei Responds as Insider Activity Emerges

As public scrutiny mounted following the token’s collapse on February 15, Milei took to X to clarify his position. He stated that he had no prior knowledge of the project’s specifics before endorsing it and denied any links to the entity behind the token. 

Hace unas horas publiqué un tweet, como tantas otras infinitas veces, apoyando un supuesto emprendimiento privado del que obviamente no tengo vinculación alguna.

No estaba interiorizado de los pormenores del proyecto y luego de haberme interiorizado decidí no seguir dándole…

— Javier Milei (@JMilei) February 15, 2025

The president also dismissed accusations from his political opponents, accusing them of trying to exploit the situation for their benefit. To address concerns, he requested the Anti-Corruption Office investigate all government members, including himself, for potential misconduct.

However, despite Milei deleting his endorsement, on-chain data revealed that insider wallets linked to the Libra team withdrew more than $107 million in liquidity. This included 57.6 million USD Coin (USDC) and 249,671 Solana (SOL), valued at approximately $49.7 million, according to blockchain intelligence firm Lookonchain.

Meanwhile, further analysis indicated that insider accounts began offloading their holdings within three hours of the token’s launch, leading to its dramatic collapse. The Kobeissi Letter, a leading global market commentary, shared data confirming this activity.

According to analysts from the crypto data firm, Bubblemaps, the Libra team is also tied to MELANIA and several other short-lived memecoins that have been launched over the past few months.