Argentine President Javier Milei is now under intense scrutiny after his endorsement of the $LIBRE cryptocurrency, which experienced a massive collapse in what many are calling a “rug pull” scam. The token, based on the Solana blockchain, skyrocketed in value after Milei’s public promotion on X (formerly Twitter) on February 14, with its market cap briefly hitting $4.56 billion. However, within 11 hours, the value of the token dropped by over 94%, leaving many investors with significant losses.
Milei had shared a post that included a link to the project’s website and a contract address, touting the token as a private initiative aimed at promoting the Argentine economy. However, as the token’s price rapidly declined, analysts raised alarms about the potential manipulation of its value, a hallmark of the infamous “rug pull” scam where developers artificially inflate a token’s value before cashing out and leaving investors holding the bag.
The collapse of $LIBRE has sparked an uproar in Argentina, with opposition lawmakers calling for Milei’s impeachment. Leandro Santoro, an Argentine lawmaker, was one of the first to demand that Milei be held accountable, stating that the scandal embarrassed the country on the international stage. “This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” Santoro told Reuters on February 16.
In a statement released shortly after the collapse, Milei denied any involvement with the project beyond his initial endorsement, stating he had no detailed knowledge of $LIBRE’s specifics. He also condemned the political opposition for attempting to use the incident to undermine his presidency, calling them “filthy rats” for trying to take advantage of the situation.
Despite his defense, Milei has requested that Argentina’s Anti-Corruption Office investigate the incident, including examining the actions of government officials. Furthermore, the President’s office disclosed that Milei had met with representatives from KIP Protocol, the company behind $LIBRE, as early as October 2024, further complicating the narrative around his involvement.
