Argentina President Javier Milei is facing calls for impeachment for promoting a controversial meme coin that first pumped and then dumped in value, destroying millions of dollars in investors' wealth.
What happened: An opposition bloc, led by Esteban Paulon from the Socialist Party, initiated a trial against Milei, demanding his presence in Congress to address allegations of corruption tied to the LIBRA meme coin launch.
Milei pushed the Solana (CRYPTO: SOL)-based coin via X on Friday, tying it to a private initiative to aid small businesses and encourage investments in Argentina.
The coin's price shot up to $5 after the president's post, but within three hours, plunged to $1 apiece as insiders began cashing out.
According to capital markets commentator The Kobeissi Letter, nearly $87.4 million worth of LIBRA was liquidated by multiple large holders.
The coin was down 64% since launch, with market capitalization crashing from $641 million to $76 million at the time of writing, according to CoinMarketCap.
See Also: Brian Armstrong Wants To Handle Growing Volumes Of Memecoins By Adding DEXes Into Coinbase: ‘A Little Bit Like The Early Days Of The Internet’
Milei has since deleted the initial promotional post, saying, "I was not aware of the details of the project, and after having become aware of it, I decided not to continue spreading the word."
The president's office has involved the Anti-Corruption Office to investigate if any member of the national government, including the president himself, has committed misconduct.
Why It Matters: The LIBRA meme coin launch was the second such endeavor supported by a head of state, following President Donald Trump's launch of his Official Trump (CRYPTO: TRUMP) coin.
Argentine lawyers filed charges against Milei in criminal court on Sunday, reported The Associated Press. Lawyer and plaintiff, Jonatan Baldiviezo, told AP that according to them there was an illicit association to carry out an “indeterminate number of frauds” in the LIBRA meme coin event.
The TRUMP coin has also cratered since the initial frenzy, down 74% from its peak.
Milei secured victory in the November elections after promising large cuts in public spending to address Argentina's fiscal deficit and increasing inflation. A libertarian, Milei is known for his support for Bitcoin (CRYPTO: BTC), the world's largest cryptocurrency.
Photo courtesy: Shutterstock
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