17-2-2025 (BUENOS AIRES) A crypto scandal has erupted in Argentina, casting a dark shadow over President Javier Milei’s administration and sending shockwaves through global cryptocurrency markets. The controversy centres on LIBRA, a meme token that spectacularly crashed from a $4.5 billion market value to just $200 million million, triggering calls for the president’s impeachment.
The token, initially touted as a grassroots initiative to bolster small enterprises, received a significant boost when President Milei endorsed it on his official X social media account. However, the project quickly unravelled when blockchain analysts uncovered that a mere ten digital wallets controlled an overwhelming 82% of the token’s supply.
In a devastating blow to retail investors, blockchain records indicate that insider wallets extracted approximately $87.4 million within just three hours of trading, leaving countless small investors nursing substantial losses. The Argentine Fintech Chamber has suggested the incident bears hallmarks of a “rug pull” – a notorious crypto scam where developers abandon projects after profiting from initial investments.
President Milei’s hasty deletion of his promotional post and subsequent claims of ignorance regarding the token’s mechanics have only intensified scrutiny. The incident has drawn uncomfortable parallels with his previous endorsement of Coinx World, a fraudulent investment operation that collapsed in 2022.
Opposition figure Leandro Santoro is spearheading impeachment efforts, arguing that the president’s cryptocurrency endorsements have severely damaged Argentina’s international standing. The fallout has triggered a broader market correction in the meme coin sector, with over $6 billion in market value evaporating within hours. TRUMP coin, another popular meme token, saw $500 million wiped from its market capitalisation in the aftermath.
Julian Peh, who heads Kip Protocol and is allegedly connected to LIBRA’s development, has rebuffed accusations of wrongdoing. “No funds have been sold, and the project continues to operate,” Peh stated, though he failed to provide a concrete strategy for restoring investor confidence.