• Argentina’s President Javier Milei denies endorsing the $LIBRA cryptocurrency amid fraud claims.
• Investors lost over $4 billion following the rapid rise and subsequent collapse of the crypto coin.
• A federal judge will investigate Milei’s potential role in fraud associated with the $LIBRA launch.

Argentine President Javier Milei has come under intense scrutiny after the cryptocurrency $LIBRA collapsed shortly after his endorsement, leading to significant losses for investors. According to reports from Al Jazeera and others, Milei defended himself by stating, "I did not promote it, I spread it," arguing that the situation is merely a "problem between private parties" and asserting that he acted in "good faith". The rapid surge in the cryptocurrency's value, followed by a swift decline, led many to suggest that this might have been a "rug pull" fraud, where original investors withdraw their support after inflating the coin's value to cash in on it.

Over $4 billion was reportedly wiped out from the market, affecting over 40,000 investors, as highlighted by the Observatory for the Right to the City, a local NGO alleging that Milei was part of a "criminal organization" responsible for the fraud. As scrutiny intensifies, opposition leaders, including former president Cristina Kirchner, have called for impeachment proceedings against Milei, although these efforts face hurdles due to the need for a two-thirds majority in the lower house.

Following the fallout, a federal judge, Maria Servini, will lead an investigation to determine if Milei violated any laws or engaged in fraud related to his social media endorsement of $LIBRA. In response to the situation, he has distanced himself from the project’s actual development while promising to cooperate with ongoing investigations, which now involve Argentina's Anti-Corruption Office assessing the legitimacy of Milei’s involvement in the scandal. As a result of the controversy, Argentina’s stock market also experienced a significant drop, with the Buenos Aires Stock Exchange falling 5.58 percent on Monday.

Political analysts suggest that while the impeachment may be unlikely to proceed, the scandal could undermine Milei's credibility, especially as he seeks to implement radical economic reforms. Despite the political turbulence, President Milei continues to maintain that he has "nothing to hide" and plans to pursue his political agenda, including efforts to manage Argentina’s inflation, which has recently seen its lowest levels in four years. For further details, refer to BBC.