The president promoted a memecoin that collapsed, inflicting losses on its investors

Argentine President Javier Milei has rejected accusations of fraud and calls for his impeachment over his promotion of a cryptocurrency that skyrocketed in value before crashing within hours of launch, resulting in massive investor losses, CNN has reported.

Last week, Milei promoted the new $LIBRA digital token on his social media page, touting it as a project that would boost economic growth by supporting small businesses and entrepreneurs. His endorsement triggered a surge in the token’s value, from about $0.22 to $5. However, the token price collapsed shortly after he deleted the post, wiping out millions in investor funds.

Milei defended his actions on Tuesday, equating investors who bought the token after his endorsement with gamblers placing bets. “The reality is, if you go to the casino and lose money, I mean, what is the complaint?” he asked.

A group of lawyers have filed multiple complaints against Milei, with some calling for his impeachment. A lawyer for one of the plaintiffs alleges that an illicit association was formed to commit “an indeterminate number of frauds.”

“I did not promote it. What I did was I spread it,” Milei responded, claiming that he did not benefit from the digital currency.

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The opposition Popular Unity party has filed a formal complaint, accusing the president of facilitating a fraudulent scheme known as a ‘rug pull’ – a tactic where a cryptocurrency is heavily promoted to lure investors in before its backers abandon the project, leaving the hapless coin-holders with worthless assets.

According to crypto analytics firm LookOnChain, eight digital wallets involved in early trading of $LIBRA cashed out a total of $107 million. Data from ICOBench revealed that about 60 individual traders lost over $500,000 each, while 24 traders suffered losses of at least $1 million.

As of Wednesday, $LIBRA is valued at around $0.30, according to CoinMarketCap.com.

Kelsier, the company behind $LIBRA, has denied any wrongdoing, insisting that the project is legitimate.

Hayden Mark Davis, a representative of the firm associated with the coin, blamed Milei for abruptly withdrawing support at a crucial moment, leading to the market crash.

“When Milei and his team deleted their posts, investors who had purchased the token based on their trust in his endorsement felt betrayed,” which led to a “wave of panic selling,” NBC quoted Davis as saying.

In response, Milei’s office released a statement, cited by the AP, asserting that he was not involved in any stage of the cryptocurrency’s development and decided to remove his social media post to limit further exposure. The statement also reportedly said that the Anti-Corruption Office had been instructed to launch an investigation.