Argentina's Milei faces legal and political backlash over crypto scandal

President Javier Milei of Argentina is facing serious legal and political consequences after promoting a cryptocurrency on social media, which resulted in a dramatic crash in its value and widespread financial losses for investors, BBC reported. 

Milei had posted on X (formerly Twitter) about the $LIBRA coin, encouraging people to invest in it as a way to support small businesses. The price soared initially but collapsed after Milei deleted the post, causing an uproar.

The fallout has led to opposition lawmakers in Argentina pushing for impeachment proceedings against the president. Additionally, a group of lawyers filed complaints against him in criminal court, accusing him of fraud. 

Critics have called Milei's actions a "rug pull," claiming that the link he shared led to a scheme designed to deceive investors.

The presidential office clarified that the post was removed to avoid further speculation, and that Milei was not involved in the development of the cryptocurrency. 

They assured that the Anti-Corruption Office would conduct an investigation to determine if any wrongdoing occurred, including by the president himself.

Jonatan Baldiviezo, a key plaintiff in the fraud case, claimed that Milei’s actions were instrumental in the alleged crime. 

The controversy has sparked fierce criticism from Milei's political opponents, with former President Cristina Fernández de Kirchner labeling him a "crypto scammer." 

The main opposition coalition has also called for the president’s impeachment, describing the situation as an "unprecedented scandal."