Markets

President Javier Milei Causes Argentina’s Stock Market to Plunge Severely

2 mins mins
President Javier Milei Causes Argentina's Stock Market to Plunge Severely

Key Points:

  • Argentina’s S&P Merval index dropped over 3% after President Javier Milei promoted and later distanced himself from the LIBRA token.
  • Opposition lawmakers are pushing for Milei’s impeachment over alleged insider trading.

Argentina’s S&P Merval stock index fell sharply on Monday after President Javier Milei promoted a cryptocurrency that later experienced a dramatic crash.

Argentina’s Stock Market Falls After President Javier Milei’s Crypto Scandal

According to official data, the S&P Merval stock index dropped more than 3% in the past 24 hours, with earlier declines reaching nearly 6%.

Argentina's S&P Merval stock index
Argentina’s S&P Merval stock index. Source: TradingView

President Javier Milei endorsed a little-known digital currency, LIBRA, in a post on X on February 14, suggesting it could benefit Argentina’s economy and small businesses.

However, the token soon plummeted in value, leading to accusations of financial misconduct. Milei later deleted his post and denied any connection to the project, but the incident has triggered political and legal scrutiny.

Opposition lawmakers have called for Milei’s impeachment, alleging possible insider trading and fraud. While analysts believe the opposition lacks sufficient votes to successfully push through impeachment, they note the controversy could damage Milei’s administration ahead of mid-term elections.

According to Reuters, some investors, expressing outrage, accused President Javier Milei of facilitating a scam that led to financial losses. His supporters, however, argue that he is the target of politically motivated attacks.

Fraud Allegations Emerge Against Kelsier Ventures Executives

The scandal deepened with allegations against Hayden Davis, CEO of Kelsier Ventures, and his father, Tom Davis, both of whom are accused of orchestrating a fraudulent scheme involving LIBRA.

Reports suggest the cryptocurrency’s market value reached $4.5 billion before collapsing by 90%. Critics claim the Davis duo engaged in a “rug-pull” scheme, withdrawing $107 million in liquidity before the token’s value crashed. Legal action has also been taken against Davis and his associates for alleged financial manipulation and fraud.

Meanwhile, Jupiter exchange, a decentralized cryptocurrency trading platform, issued a statement indicating their team was aware that Milei was set to promote a crypto asset and that Davis had prior knowledge of this endorsement.

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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Avatar of John Kojo Kumi

John Kojo Kumi

17 February 2025, 16:03:57 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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