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Author: Zoltan Vardai, CoinTelegraph; Compiled by: Deng Tong, Bitchain Vision
Argentina President Javier Milei faces impeachment demands for supporting a cryptocurrency project that failed as analysts say a massive insider scam.
Solana’s native Libra (LIBRA) tokens began to rise shortly after Mile posted about the project on X (formerly Twitter).His now deleted posts include the token’s website and contract address, a “private project” dedicated to “promoting Argentina’s economic growth.”
Mile deleted X post.Source: Kobeissi Letter
According to Dexscreener, the market value of the Libra token rose to a peak of $4.56 billion at 10:30 p.m. UTC on February 14, followed by just 11 shortly since the token was first traded on a decentralized exchange.It fell by more than 94% within an hour to a market capitalization of US$257 million.
LIBRA/USDC, historical chart.Source: Dexscreener
Mile could now face impeachment risks after Argentina’s FinTech Chamber of Commerce acknowledged the case could be a conspiracy.
“This scandal has brought shame to us internationally and demanded that we make an impeachment request against the president,” opposition lawmaker Leandro Santoro told Reuters.
After the token collapsed on February 15, Mile issued a statement on X, noting that he did not know the details of the project when he supported the project and that he had “nothing with the “private enterprises” that issued the tokenrelation”.
Mile also added that his political opponents would try to take advantage of the situation, he added:
“For the mean little people from the political class who want to use this situation to do bad things, I would say that they are proving every day how mean politicians are, and they strengthen our belief in kicking their ass.”
According to a statement released by the Argentina Presidential Office on February 16, Mile has asked the Anti-Corruption Office to investigate whether all members of the government, including the president himself, have committed misconduct.
The statement also revealed that Milei held a meeting with KIP Agreement representatives in Argentina on October 19, 2024, and the company introduced him to the Libra blockchain project and its goal of funding private enterprises in the country.
Statement from the Argentina Presidential Office.Source: Presidential Office
On January 30, Mile also met with Hayden Mark Davis, a mysterious cryptocurrency entrepreneur, at Casa Rosada, who was introduced to the president as an infrastructure partner for the project.
“All information collected during the investigation will be handed over to the court to determine whether any company or individual related to the KIP Agreement project has committed a crime,” the statement added.
Milei-backed Libra tokens plunged $4 billion: What you need to know
Although Milei deleted his initial support,At least eight internal wallets associated with the Libra team successfully cashed out more than $107 million worth of liquidity.
According to on-chain intelligence company Lookonchain, which includes USD Coin and USD 249,671 Solana worth $49.7 million:
Libra internal wallet.Source: Lookonchain
According to data shared by Kobeissi Letter,Just three hours after the token debuted, the internal wallet began cashing out, causing its price to drop by more than 94%.
Other blockchain data companies have warned about the project’s token economics long before the crash.Blockchain analytics company Bubblemaps has warned of flaws in LIBRA’s token economics and revealed that 82% of the supply was unlocked from the start and available for sale.
Libra token cluster.Source: Bubblemaps
Furthermore, the project did not share preliminary information about its token economics, which is a major red flag for cryptocurrency traders.
Since U.S. President Donald Trump launched its official Trump (TRUMP) memecoin on January 18, and then First Lady Melania Trump launched Melanie on Solana Network on January 19Since the Ya Meme (MELANIA) token (to welcome the inauguration ceremony on January 20), retail investors have increased their interest in celebrity endorsement of memecoin.
