The Argentine opposition is calling for a political trial against President Javier Milei in Congress after he promoted a token that saw its price skyrocket before losing its value in a matter of hours. This whole ordeal has brought up questions about the president’s judgment and his involvement with the token, called Libra, which was based on the Solana blockchain. So, what exactly happened here?
Milei had taken to his social media account to express support for the token, touting it as a private project aimed at promoting the growth of the Argentine economy. He emphasized that the project was privately executed and that he wouldn’t personally benefit financially from it. However, the token’s price jumped over 2,000% shortly after Milei’s post, reaching a market capitalization of $4.4 billion before it all came crashing down. The website of the company behind the token, KIP Protocol, features a photo of co-founder Julian Peh with Milei, suggesting a connection between the president and the project.
Called to Political Trial at the Argentine Congress
As the dust settles, Milei could face a political trial in Congress, according to news agency Reuters, citing statements from Argentine opposition legislators. “This scandal, which shames us internationally, forces us to launch a request for a political trial against the President,” said Leandro Santoro, a member of the opposition coalition. Communities on social media warned that Libra could be a “carpet pull” scheme – a type of scam where developers create a cryptocurrency, attract investors, and then disappear with the money. The Argentine Chamber of Financial Technology and opposition members seem to agree with this assessment.
A central-left coalition opposing Milei’s libertarian government has called his foray into cryptocurrency “an unprecedented scandal,” as reported by the New York Times. The Argentine Blockchain Foundation, a non-profit organization promoting the use of blockchain technology in the country, has expressed concern and rejection over Milei’s promotion of Libra, coinciding with signs of a “carpet pull” and qualifying the fact as “a serious setback for the mass adoption of blockchain technology in the country.” The foundation noted, “The promotion of doubtful projects from figures of high political relevance without the slightest verification attempts against the credibility and safety of investors and users.”
Milei’s Government Would Have Ordered Investigation
The rapid and massive sales by initial investors that led to the token’s price falling by over 95% suggested possible trading with privileged information, which some have identified as a typical “pumping and dumping” case. It’s worth noting that “carpet pull” refers to fraud offers by developers who create a cryptocurrency, attract investors, and then disappear suddenly, leaving holders with nothing. Milei, after initially promoting the token, deleted his post and claimed he wasn’t aware of the project’s details, adding that he decided not to continue disseminating it after internalizing the information. Amidst the criticism, the Argentine presidency announced that Milei has decided to give immediate intervention to the Anti-Corruption Office to determine if there was improper behavior by a member of the National Government, including himself.
According to reports, the government is trying to create a commission in Congress to investigate what happened and determine whether any laws were infringed. The president’s office even reported that Milei had met with representatives of KIP Protocol, where the company’s intention to develop a project called “Liva La Libertad” was discussed. As the situation unfolds, one thing is clear: the president’s involvement with the Libra token has sparked a political storm and raised questions about his judgment and potential conflicts of interest. Investments in cryptoactives are not regulated in some countries and may not be appropriate for retail investors, as the total invested amount could be lost. It’s essential to see your country’s laws before investing and to approach such ventures with caution.