Milei-endorsed Libra token’s $4 billion crash: What you need to know

Argentine President Javier Milei is facing calls for impeachment after endorsing a cryptocurrency project that collapsed in what analysts are calling a massive insider scam.

Argentine President Javier Milei faces calls for impeachment over his endorsement of a cryptocurrency project that collapsed in a suspected massive insider scam.

Solana-native Libra (LIBRA) token began its rally on Feb. 14, shortly after Milei posted about the project on X, formerly Twitter. His now-deleted post shared a website and contract address for the token, which was a “private project” dedicated to “encouraging the growth of the Argentine economy.”

The Libra token quickly rose to a peak market capitalization of $4.56 billion at 10:30 pm UTC on Feb. 14, before crashing over 94% to a $257 million market cap in just 11 hours, according to data from decentralized exchange aggregator Dexscreener.

The case, which was acknowledged by Argentina’s fintech chamber as a possible rug pull, now puts Milei at risk of impeachment.

“This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” opposition lawmaker Leandro Santoro told Reuters in a Feb. 16 report.

Following the token's collapse on Feb. 15, Milei posted a statement on X, claiming he was not aware of the project's details when he endorsed it and that he has “no connection whatsoever” with the “private enterprise” that launched the token.

However, Milei stated that his political opponents will try to capitalize on the situation, adding:

Milei-endorsed Libra token’s $4 billion crash: What you need to know

Despite Milei deleting his initial endorsement, at least eight insider wallets connected to the Libra team managed to cash out over $107 million in liquidity.

This included 57.6 million USD Coin (USDC) and 249,671 Solana (SOL), which were together worth $49.7 million, as reported by onchain intelligence firm Lookonchain:

According to the Kobeissi Letter, insider wallets began cashing out on the token three hours after it became available for trading, leading to its over 94% decline.

Other blockchain data firms had flagged the project's tokenomics before the crash. Blockchain analysis firm Bubblemaps highlighted LIBRA’s flawed tokenomics, showing that 82% of the supply was unlocked and sellable from the initial launch.

The project also failed to disclose any upfront information on its tokenomics, which is a major red flag for crypto traders.

Retail investor appetite for celebrity-endorsed memecoins has surged since U.S. President Donald Trump launched his Official Trump (TRUMP) memecoin on Jan. 18, followed by First Lady Melania Trump’s Melania Meme (MELANIA) token on Jan. 19 on the Solana network ahead of his inauguration on Jan. 20.