Argentine President Javier Milei finds himself at the center of a political storm as calls for his impeachment intensify following his promotion of a lesser-known cryptocurrency, LIBRA. The Union for the Homeland coalition, a major opposition group, has initiated the impeachment process, questioning Milei's role in what many are labeling a financial fiasco. This controversy erupted after Milei endorsed LIBRA on his X account, causing the cryptocurrency's value to skyrocket before crashing to mere cents within hours, resulting in significant investor losses.
The presidency has launched an investigation into the matter to understand the implications of Milei's actions. The situation became more contentious when Pablo Sabbatella, a crypto security expert, accused the president of involvement in a "pump and dump" scheme. Sabbatella highlighted that the cryptocurrency was created just minutes before Milei's promotional message, suggesting manipulation. He explained that large holders, or "whales," benefited by buying low and selling high before the crash.
"The whales (large holders of the asset) bought at practically nothing. Then the price flies and when it is up, they sell. It is known as pump and dump; that mechanic happened," – Pablo Sabbatella
In response to the mounting pressure, Milei deleted his initial tweet and distanced himself from the cryptocurrency initiative. He stated his lack of awareness regarding the project's details and subsequently decided not to further endorse it.
"I was not aware of the details of the project and after having become aware of it I decided not to continue spreading it," – Javier Milei
Despite these developments, Security Minister Patricia Bullrich defended Milei's actions, citing freedom of expression as a fundamental right.
"The president has the freedom of expression to raise the issues he wants." – Patricia Bullrich
Figures close to President Milei have dismissed impeachment calls as an attempt to undermine his leadership. Congressman Diego Santilli characterized the impeachment push as an effort to "overthrow" the president. Meanwhile, Milei's team described the incident as a misunderstanding when approached by CNN.
As the political drama unfolds, the future of President Milei's administration hangs in a fragile balance. While he insists that his promotion aimed to boost Argentina's economy, critics argue that it inadvertently spearheaded financial instability.
"This private project will be dedicated to encouraging the growth of the Argentine economy," – Javier Milei
