The crypto currency scandal in Argentina involving President Milei is escalating. The opposition announced that it will initiate an impeachment process against Milei on charges of fraud. The incident has been described as the biggest crisis of the Milei era. While the Argentine stock market plummeted, the peso depreciated. The crypto currency LIBRA was found to be connected to Melania Trump. Argentine President Javier Milei initially voiced his support for a crypto currency called LIBRA, only to retract it later.
This particular memecoin project caused millions of dollars in losses for investors. The value of LIBRA rapidly rose above $4 and then dipped below 50 cents. Investors accused the developers of engaging in fraud known as rug pull. It was alleged that the developers inflated the price of the crypto currency before withdrawing their initial capital. The opposition has filed dozens of lawsuits accusing Milei, who supported the project, of ethical violations. The leftist Peronist opposition bloc claimed that Milei participated in crypto currency fraud and announced that they would start the process of removing him from office. This incident has been described as the largest crisis since Milei took office in December 2023.
The presidential office stated that Milei had met with representatives of the companies behind the crypto currency twice but had not been involved in its development in any way.
It was reported that Milei’s social media posts were intended to promote Argentine businesses. The President requested assistance from the anti-corruption office to investigate whether he or any government official had engaged in any irregularities. On the other hand, the biggest crisis of the Milei era also affected the stock market. The Argentine stock market dropped by more than 5% on Monday. The country’s currency, peso, lost 2% against the dollar in the foreign exchange market. Experts noted that the crisis would heighten suspicions among foreign investors about the government’s political capacity.
Concerns were raised that the reform program in the country could also be at risk. To remove Milei from office, a two-thirds majority in Congress is required. However, under the current circumstances, it is not possible for the opposition to reach that number. It is said that the center blocs in parliament will not support the proposal. On the other hand, the crypto analysis company Bubblemaps claimed that there was a connection between the MELANIA memecoin issued on behalf of Donald Trump’s wife and LIBRA. The company stated that there were concrete evidence that the team behind both crypto currencies was the same. According to the research, transactions were made from the same wallet addresses in both crypto assets.