Argentine President Javier Milei’s endorsement of the Libra token without proper due diligence led to massive investor losses and potential impeachment. The cryptocurrency reportedly failed due to concentrated liquidity and insider trading before its launch. Amid rising controversy, Milei has initiated an investigation into the circumstances around Libra’s endorsement and its management.
Argentine President Javier Milei endorsed the token Libra, which was purportedly meant to bolster local enterprises, without conducting sufficient due diligence. This endorsement has triggered serious consequences, potentially leading to impeachment as numerous investors incurred significant losses. The endorsement launched a troubling series of events impacting both Milei’s credibility and the cryptocurrency market.
Milei’s endorsement of Libra, shared via social media, aimed to promote growth in Argentina. In a now-deleted post, he linked the token to a liberal economic revolution and emphasized its role in funding small and medium enterprises: “Liberal Argentina is growing. This private project will be dedicated to encouraging the growth of the Argentine economy, funding small Argentine businesses and startups. The world wants to invest in Argentina.”
Following Milei’s endorsement, Libra initially experienced a surge in market cap. However, serious issues surfaced, including the absence of token locks or vesting mechanisms. Liquidity was heavily concentrated among a few wallets, and after a brief surge above $5, the token price plummeted.
Investigations by Look On Chain revealed suspicious insider trading patterns before Libra’s launch, involving at least 11 wallets that generated $43.8 million in profits by selling after the price spike. Also, wallets linked to the Libra team began to withdraw liquidity, profiting another $107 million, indicating potential manipulation.
Realizing his oversight, Milei repudiated his support for Libra, claiming ignorance of the project’s details prior to his endorsement. He deleted the initial post, stating, “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 (that is why I deleted the tweet).”
Kip Protocol, allegedly associated with Libra, clarified that Milei had no role in the token’s launch. However, Kelsier Ventures, involved in the token launch, claimed that it had secured Milei’s endorsement. Hayden Mark Davis from Kelsier referred to missing key individuals in the launch process, adding confusion to the matter.
As ramifications continue to unfold, opposition leader Leandro Santoro has suggested initiating impeachment proceedings against Milei due to the international embarrassment caused by this incident. Santoro stated, “This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president.”
Milei’s office denied any allegations, asserting that the endorsement was merely informative, contrasting with claims from Kelsier Ventures regarding secured support. Moreover, Milei has called for an independent investigation into the relationship of his government with the Libra project, intending to clarify potential missteps by any involved parties.
The outcome of the investigation could bear significant implications for Milei’s presidency, as the results will be handed to courts to determine possible criminal activities linked to the KIP Protocol project, further complicating his administration’s position.
President Javier Milei’s endorsement of the Libra cryptocurrency has led to substantial investor losses and raised questions about his due diligence. While he has distanced himself from the project, the political fallout may threaten his administration as calls for impeachment arise. Investigations into the token and its connections could have severe implications on both Milei’s leadership and the broader cryptocurrency landscape in Argentina.
Original Source: news.bitcoin.com
