Argentine opposition proposes impeachment of Milei after cryptocurrency scandal

Argentina president Javier Milei faces an impeachment request after promoting, on his social networks, the $ Libra cryptocurrency, which collapsed in a few hours and caused estimated damage to over $ 286 million. The episode generated strong political repercussion and led opposition to formalize a request for canceling the mandate, arguing that the head of state used his position to stimulate a financial fraud scheme.

The case is already investigated in both Argentina and the United States, where the Justice Department and the FBI received complaints against Milei and entrepreneurs involved in the launch of the digital currency.

On Friday (14), Milei published in his profile on social network X (former Twitter) a post encouraging investments in $ Libra, describing it as a project focused on “strengthening the Argentine economy”. The presidential endorsement generated euphoria among investors and caused the asset to rise from cents to nearly $ 5.00 in a few hours.

However, lightning appreciation was followed by an abrupt collapse. According to data from specialized consultancies, 80% of assets were concentrated in the hands of a small group of investors, who parade from cryptocurrencies at the height of the price, pocketing millionaire profits.

With this, the value of the currency plummeted, leaving tens of thousands of investors at the loss. The movement raised suspicions that it was a “rug pull” scheme, in which creators artificially inflate the price of an asset and then sell it and cause its devaluation.

Evidence of crime and connection with foreign entrepreneurs
The $ Libra cryptocurrency was launched by Kip Protocol, based in the United States, and is CEO businessman Julian Peh, from Singapore. The records indicate that Milei met in person with PEH and others involved in the project at least twice, in October 2024 and January 2025.

The complaint taken to the FBI and the US Department of Justice points out that financial fraud may have moved about $ 4.5 billion and cites Javier Milei, Julian Peh, American Hayden Mark Davis and Argentine businessmen Mauricio Novelli and entrepreneurs Manuel Terrones Godoy as suspected of integrating the scheme.

The Moyano & Associados law firm, responsible for the international complaint, states that there is evidence of financial crimes and money laundering, since Kip Protocol and Kelsier Ventures – the company that has brokered the conversion of obtained profits – not properly recorded in US Securities Commission (SEC), raising suspicions about the legality of the operation.

Political pressure and impeachment request

Given the repercussion, the peronian and socialist opposition filed a formal request for impeachment against Milei in the House of Representatives on Monday (17). The Union by the Fatherland (UXP) block argues that the president abused his position to promote a financial blow and must be held responsible for it.

CGT (General Labor Confederation) and trade union centrals also condemned the government’s attitude and requested immediate investigations into the case. In a statement, CGT classified the promotion of $ Libra as an “irresponsible financial maneuver” and warned of negative impacts on the country’s economy.

In addition to the impeachment request, opposition parliamentarians require the chief of staff, Guillermo Franco, to attend Congress to provide clarification on the government’s relationship with cryptocurrency creators.

Milei defends himself and minimizes the case

Faced with the crisis, Milei adopted a defensive and provocative stance. In an interview with TV Argentina, the president said he has no responsibility for investor losses and compared the case to a betting home. “If you go to the casino and lose money, what’s the complaint?” He said.

In addition, Milei claimed that he was not aware of the details of the project and that his post on social networks was disinterested support to an alleged “private venture.” However, the statement contradicts the fact that he had already met with the creators of cryptocurrency and promoted similar investments in the past.

Amid growing pressure, the government announced the creation of a “research task force”, under the command of the anti-corruption workshop, to investigate possible irregularities in the creation and collapse of $ Libra. The measure, however, is seen by analysts as an attempt to control damage, as Milei himself will be one of the targets of the investigation.

Impacts and developments

The crisis involving the Libra has become the largest political scandal of the government Milei so far. In addition to internal wear and tear, the case echoed negatively in the financial market, with the Buenos Aires scholarship falling 6% and foreign investors showing distrust of the country’s economic stability.

The episode also affects the president’s political capital. With legislative elections scheduled for October, the opposition bets that the wear and tear caused by the case can weaken the governing base in Congress, making Milei’s governability even more difficult.

If the impeachment request will advance or not still uncertain, but the scandal has already left deep marks in government and intensified the political crisis in Argentina.