(DailyChive.com) – Argentina’s cryptocurrency scandal unfolds as President Javier Milei faces backlash over his $Libra endorsement, sparking calls for impeachment.
At a Glance
- President Milei promoted $Libra, which later collapsed, causing $250 million in losses.
- The incident has led to national outrage and calls for Milei’s impeachment.
- A federal investigation has been launched amid accusations of insider dealings.
- President Milei denies involvement, shifting blame to KIP Protocol.
Promotion and Collapse of $Libra
Argentina was shocked by a tweet from President Javier Milei endorsing the new cryptocurrency $Libra, sparking a whirlwind of investment. Following the initial surge, the currency’s value plummeted, erasing $250 million in investor funds in a swift ‘rug-pull’ maneuver. Investors were left grappling with severe losses as insiders sold their stakes at the highest point. National outrage has mounted as the public questions Milei’s intention behind promoting such a volatile financial product.
Milei has denied any personal gain from the debacle, attributing the scandal to KIP Protocol, a Singapore-based startup. However, claims that members of Milei’s inner circle may have been involved have intensified scrutiny. Reports have surfaced suggesting meetings tied to the cryptocurrency launch occurred within the presidential office, implicating Milei’s sister and his chief of staff.
Financial and Political Fallout
Hayden Davis, an American consultant, admitted to profiting $100 million from the scheme. His testimony, coupled with assertions of exerting control over Milei’s public appearances, has fueled suspicions of collusion. Davis further claimed to have offloaded substantial amounts of $Libra at peak values, exacerbating the financial ruin experienced by novice investors. This crisis has amplified calls for President Milei’s impeachment and spurred a federal investigation to probe deeper into the rampant allegations of misconduct.
“The world wants to invest in Argentina” – Javier Milei
The broader crypto community, already skeptical of political endorsements in the digital currency domain, expresses resentment over the blatant exploitation of amateur investors. Ethical concerns loom large, highlighting the potential dangers when political figures endorse financially precarious products. Despite the evidence and growing disapproval, Milei maintains a detached stance, likening the investment losses to gambling mishaps.
Implications and Investigations
Amidst the controversy, President Milei issued statements that distance himself from the actual operation of $Libra. He stated, “You’ll notice that the company that organized the launch, KIP, explicitly stated that I had nothing to do with it.” Yet, new allegations of insider activity and connections to other speculative coins, such as $Melania, continue to erode public trust. The mix of political power, speculative investments, and alleged unethical conduct has created a volatile environment demanding transparent accountability from Argentina’s leadership.
“You’ll notice that the company that organized the launch, KIP, explicitly stated that I had nothing to do with it” – Mr. Milei
This scandal stresses the need for strict regulations and oversight in digital currency promotion, especially when linked to influential political figures. As the federal investigation unfolds, it serves as a pivotal moment for Argentina to address how emerging financial tools intersect with governance, ensuring both economic stability and public trust are preserved.
Copyright 2025, DailyChive.com
