Argentina's Stocks Fall 5.7% Amid Milei's Crypto Scandal

Argentina's stock market experienced a dramatic decline of over 5% on February 17, 2025, following a scandal involving the cryptocurrency $LIBRA, which President Javier Milei had endorsed. The $LIBRA token plummeted from $12.45 to $9.87 within an hour, leading to significant panic selling and the liquidation of over $50 million in long positions. Amid allegations of insider trading and fraud linked to the token's rapid collapse, Milei quickly distanced himself from the cryptocurrency, but calls for his impeachment have emerged. Analysts suggest that while the opposition may struggle to secure votes for impeachment, the scandal could severely impact Milei's political standing ahead of the mid-term elections. The situation has raised concerns about investor confidence in cryptocurrencies and the potential for further regulatory scrutiny in Argentina. The fallout from this incident highlights the precarious relationship between political endorsements and financial markets in the crypto space.