After a turbulent turn of events surrounding a contentious crypto endorsement, political unrest has erupted. Argentine President Javier Milei is now facing the possibility of an impeachment trial in Congress, as asserted by opposition lawmakers over the weekend. The libertarian leader had recently promoted a cryptocurrency that experienced a rapid crash shortly after his endorsement.
On a late Friday evening, Milei took to social media platform X to recommend a relatively obscure crypto coin known as $LIBRA. Following his endorsement, the value of $LIBRA skyrocketed to nearly $5 per unit within a brief period. However, this surge was short-lived, as the cryptocurrency’s value dramatically plunged to under $1 mere hours later.
The Argentine fintech chamber has acknowledged the potential for foul play in this situation, suggesting that it could be a case of a “rug pull.” This deceptive tactic involves developers of a crypto token luring legitimate investments to artificially inflate its value, only to swiftly sell off their stake at a profit.
Expressing deep concern over the scandalous turn of events, lawmaker Leandro Santoro, a member of the opposition coalition, emphasized the need for an impeachment request against President Milei. The controversy has not only caused embarrassment on an international scale but has also sparked calls for accountability within the political realm.
Following the backlash, Milei promptly removed the contentious post from social media platform X. Local media sources reported that the post had been visible for a few hours on Friday night before being taken down. In response to the backlash, Milei clarified that he had no prior knowledge of the cryptocurrency’s dubious nature and distanced himself from the project.
In the wake of this controversy, the political landscape in Argentina is fraught with tension and uncertainty. The repercussions of this tumultuous event are likely to reverberate across various sectors, raising concerns about the impact of political figures endorsing volatile financial assets without due diligence.
(Report by Jorge Otaola; Writing by Kylie Madry; Editing by Chizu Nomiyama)
