Javier Milei Faces Impeachment Threat After Allegedly Endorsing $107M Crypto Scam

Argentine President Javier Milei is at the center of a political firestorm after allegedly endorsing the now-collapsed Libra (LIBRA) cryptocurrency project. The Solana-based token soared in value after Milei promoted it on X (formerly Twitter) on Feb. 14, only to crash over 94% within hours. The fallout has led to impeachment calls, with critics accusing Milei of backing a potential rug pull that insiders used to cash out over $107 million.

The Libra token hit a staggering $4.56 billion market cap at its peak before plummeting to $257 million. Opposition lawmaker Leandro Santoro called the incident a "national embarrassment" and urged Milei’s impeachment. Argentina’s fintech chamber has also raised concerns that the token may have been part of a larger fraud scheme.

Milei, who quickly deleted his endorsement post, denied any involvement with the project, calling it a "private enterprise." He dismissed the political backlash as an attempt to undermine his administration, referring to critics as "filthy rats of the political caste." Despite his claims of innocence, his prior meetings with representatives from KIP Protocol—the entity behind the token—are now under scrutiny.

Onchain data reveals that eight insider wallets dumped over $107 million in liquidity shortly after trading began. Analysis from Lookonchain and Bubblemaps exposed suspicious tokenomics, with 82% of the supply unlocked from the start, allowing early investors to exit before retail traders suffered losses.

The controversy comes amid a wave of celebrity-backed memecoins, including Donald Trump’s TRUMP and Melania Trump’s MELANIA tokens. With regulatory bodies now investigating, Milei’s presidency faces a crucial test as Argentina grapples with the fallout of the crypto scandal.