Argentinian President Javier Milei has landed himself in a crypto scandal following a post on social media.
In a post on the «X» platform on Friday evening, the libertarian politician referred to a cryptocurrency that is intended to support the financing of SMEs in Argentina. The aim of the «$Libra» currency is to «stimulate the growth of the Argentine economy by financing small businesses and Argentine entrepreneurs,» wrote President Javier Milei.
The result was a sharp rise in the price of the token to more than $5, with market capitalization increasing from around $1 billion to $5 billion.
Shortly afterward, Milei deleted his post again. «I didn't know the details of the project, and when I found out, I decided to stop promoting it,» he said. And the crypto value reacted by plummeting to $1.
The Argentine Fintech Association acknowledged that the case could possibly be a so-called rug pull, in which the developers of a crypto token attract legitimate investments that drive up the price in order to sell their shares later.
Calls for Impeachment Proceedings
In the meantime, the opposition has called for impeachment proceedings. «This scandal, which is embarrassing us on an international level, requires us to initiate impeachment proceedings against the president,» opposition MP Leandro Santoro was quoted as saying by the news agency «Reuters».
Milei himself is said to have commissioned the Argentinian corruption authority with an investigation, in the meantime.
The company that monetizes the token gave a different account of events. Hayden Mark Davis, head of Kelsier Ventures, describes himself in a video as an advisor to Milei and that he is working with the president's team on various projects. «Despite prior commitments, Milei and his team unexpectedly changed their position, withdrew their support and removed all prior endorsements on social media. This abrupt decision was made without warning and contradicted direct prior assurances,» he said.
