Javier Milei, President of Argentina, is facing the worst crisis of his government after his involvement in the promotion of the $Libra cryptocurrency, which turned out to be a scam. This episode has damaged his credibility both as an economist and as a political leader and has opened the door to impeachment and a criminal complaint against him.
The beginning of the scandal
It all started when Milei posted on his X account (formerly Twitter) an invitation to invest in $Libra, presenting it as an opportunity to finance entrepreneurs in Argentina. In a matter of minutes, the cryptocurrency reached a global value of $4.5 million. However, in what is known as a “rug pull” (a fraudulent strategy in which the creators of an asset artificially inflate its value and then abandon it), the coin quickly collapsed, leaving numerous investors with significant losses.
Upon realizing the situation, Milei removed his publication and argued that he had not done enough research on the cryptocurrency before recommending it. However, the damage was already done, and the criticism was not long in coming.
Complaints and impeachment
As a result of this scandal, attorney Jonathan Emanuel Bandieviezo filed a criminal complaint against Milei for fraud and illicit association. In addition, deputies Esteban Paulón, Mónica Fein and Natalia de la Sota filed an impeachment proceeding against him, alleging “poor performance and possible crimes in the exercise of his duties”.
The impeachment proceeding seeks to clarify whether there was a conflict of interest and whether Milei, as a public official, acted improperly in promoting an investment without guarantees. The Impeachment Commission, the National Securities Commission and the Anti-Corruption Office were summoned to investigate the case.
Impact on Milei’s image
This scandal has weakened Milei’s image, not only as president but also as an economist. Experts point out that he should have analyzed the cryptocurrency before recommending it and question his ability to manage the country’s economy.
To aggravate the situation, a television interview where Milei was trying to defend himself ended up exposing a previous preparation between the president and the journalist, which generated criticism about the authenticity of his answers. Former President Cristina Fernández de Kirchner was one of the most critical voices, calling him a “swindler with cryptos and a swindler with interviews”.
Could Milei be dismissed?
According to Dr. Claudia Edith Serrano Solares, a specialist in Latin American Studies, Milei’s dismissal would not be immediate, since the judicial process must follow its course. However, she considers that this investigation could erode his leadership and weaken his political support.
The government tried to calm the crisis by arguing that Milei’s intention was to encourage the use of blockchain to finance ventures and that the Anti-Corruption Office would assess whether there was any misconduct within the Executive.
Conclusion
The $Libra case has put Javier Milei in the eye of the storm, threatening his tenure and reputation as an economist. As the investigation progresses, uncertainty is growing about the political impact this scandal will have on his government and on the confidence of Argentine citizens.
