Key Points:
- Argentine President Javier Milei promoted the LIBRA token, which briefly surged in value before crashing by over 80%.
- Opposition lawmakers are considering impeachment proceedings against Milei, with allegations of damaging Argentina’s global reputation.
- The Argentine Presidential Office requested an Anti-Corruption probe to determine if Milei engaged in misconduct related to cryptocurrency.
Argentina’s President Javier Milei is facing political backlash after endorsing a little-known cryptocurrency, LIBRA, which saw a dramatic rise and subsequent crash in value.
Read more: LIBRA Token Sparks Scam Suspicions After Being Promoted by Argentine President
Argentina’s President Javier Milei Sparks Controversy As LIBRA Loses Value
The controversy erupted after President Javier Milei promoted the token on social media, claiming it would boost economic growth and benefit small businesses. However, within hours of his endorsement, concerns emerged that the coin could be fraudulent, leading to a sharp sell-off. The president later deleted his post and distanced himself from the project.
LIBRA’s value has plummeted by over 80% following reports that the development team sold off a significant portion of the tokens.
While the cryptocurrency was initially linked to Milei, the project’s website clarifies that it is a private initiative developed by KIP Protocol, a Web3 platform supported by Animoca Ventures. KIP Protocol has stated that token issuance and market making are managed by Kelsier Ventures, which claimed Milei had pledged support but later withdrew.
Further scrutiny has emerged regarding the origins of the LIBRA token. Solayer, a blockchain analytics firm, traced its creator to Arunkumar Sugadevan and a group linked to alleged Indian financial frauds.
Investigators also found connections between LIBRA’s developer and other questionable projects, including MELANIA, ENRON, and OG.FUN tokens. Reports indicate that over $15 million was laundered through SideShift and FixedFloat.
Political Fallout and Impeachment Threats Emerge
Amid the growing controversy, the Argentine Presidential Office has requested the Anti-Corruption Office to investigate whether any government officials, including Milei, engaged in misconduct related to the cryptocurrency. The findings will be forwarded to the courts to determine if any legal violations occurred.
According to Reuters, opposition lawmakers are considering an impeachment trial against Milei, arguing that his cryptocurrency promotion has damaged Argentina’s credibility on the global stage.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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