CNN
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Argentine President Javier Milei is facing calls for impeachment after promoting a little-known cryptocurrency, whose price soared then collapsed after his endorsement, leading to losses for thousands of investors.

The news has caused a major scandal in Argentina, with the opposition accusing Milei of promoting a scam, an allegation that the presidency has denied.

It started with a tweet posted by the president to his X account, which has more than 3.8 million followers. “This private project will be dedicated to encouraging the growth of the Argentine economy,” he wrote, with a link to the $LIBRA cryptocurrency project.

Hours later, Milei deleted the message and, in another post, said he had no ties to the initiative. “I was not aware of the details of the project and after having become aware of it I decided not to continue spreading it,” he said.

In response to a CNN inquiry, Milei’s team described the incident as a mistake. CNN has reached out to the National Securities Commission, the governing body of the capital market in Argentina, to determine if it will take action.

The presidency on Saturday announced an investigation into the matter, saying: “President Javier Milei has decided to immediately involve the Anti-Corruption Office to determine whether there was improper conduct on the part of any member of the national government, including the president himself.”

Up and down in a matter of hours

At the time of its launch, most of the cryptocurrency was held in a few digital wallets, and its price was almost zero. After the president’s post, its price increased rapidly to almost $5, but in less than three hours it plummeted to cents, according to trading application sites.

Pablo Sabbatella, an expert on crypto security issues, told CNN that Milei shared a “smart contract,” a kind of interbank code, of the Solana blockchain platform, which had became fashionable in recent months among investors who bet on highly volatile assets.

“The first thing I saw was that the website had been registered yesterday (Friday); (which) is typical of a scam,” said Sabbatella. He also indicated that the token was created minutes before Milei published the message.

“The whales (large holders of the asset) bought at practically nothing. Then the price flies and when it is up, they sell. It is known as pump and dump; that mechanic happened,” said Sabbatella.

He noted that he saw accounts that bought at very low levels earning more than $4 million in two hours, and one that earned up to $87 million with the sale.

Argentina’s political opposition criticized the president, with the Union for the Homeland coalition announcing Saturday it would move forward with a request for impeachment against Milei.

CNN has reached out to the presidency for comment.

Figures close to Milei rejected the possibility of an impeachment, with Congressman Diego Santilli calling such calls an attempt to “overthrow” the president.

Security Minister Patricia Bullrich defended Milei, telling Radio Rivadavia: “The president has the freedom of expression to raise the issues he wants.” She also compared his message on X with a presidential visit to a factory, saying that “it does not imply that he is creating a lobby for that place.”