Javier Milei and $LIBRA: Argentina's President Could Face Impeachment After Crypto Scandal

• LIBRA hits $4,5 billion and crashes after massive selloff.
• Hayden Davis accused of manipulating President Javier Milei.
• Milei's impeachment unlikely despite scandal.

Argentine President Javier Milei has found himself in the eye of a political storm after his promotion of the LIBRA memecoin, which has seen a dramatic market crash. The coin, which initially reached a market cap of $4 billion, has collapsed after a massive sell-off by some significant holders. The incident raises questions about the president’s possible involvement in a cryptocurrency fraud scheme.

LIBRA launched on the Solana blockchain and quickly reached a market valuation of $4,5 billion. Milei had promoted the cryptocurrency on social media, which helped boost its value initially. However, the token’s value plummeted by more than 90% within hours after a quick sell-off by “insiders,” who reportedly withdrew more than $107 million in liquidity from the market.

LIBRA co-creator and Kelsier Ventures CEO Hayden Davis is at the center of the allegations. Months before the memecoin collapsed, Davis allegedly claimed influence over Milei through payments to the chairman's sister, Karina Elizabeth Milei. In messages revealed by a investigation From CoinDesk, Davis stated:

“I control that n****. I send his sister $$ and he signs everything I say and does what I want.”

Javier Milei Talks About the LIBRA Case

“If you were in the casino and you lost everything (…) You knew what they were doing in a highly volatile market.”

🚨URGENT – Milei talks about the Libra crypto scandal and says that this is a volatile market, comparing it to a casino

"If you were in the casino and you lost everything (…) You knew what they were doing in a highly volatile market." pic.twitter.com/QBjjyKrQ4z

— SPACE LIBERDADE  (@NewsLiberdade) February 18, 2025

Javier Milei Could Face Impeachment After LIBRA Crypto Scandal

Despite the allegations, the chances of Milei being impeached seem slim at the moment. He maintains strong popularity and support within Congress, and only the Union por La Patria party has expressed interest in impeachment, with no major support from other parties. The 31-member Political Judgment Commission is split in favor of Milei, with 17 votes against continuing the investigation and only 13 in favor.

While domestic politics may seem to protect Milei, the international repercussions are widespread. U.S. authorities are considering taking jurisdiction over the case due to the involvement of American citizens and U.S.-based investors. Additionally, blockchain analysts have linked Davis to other failed memecoin launches, such as the MELANIA token, which was tied to former U.S. First Lady Melania Trump.