- Argentina‘s Chamber of Deputies approved the creation of a special commission to investigate the LIBRA cryptocurrency scandal involving President Javier Milei.
- The LIBRA token promoted by Milei crashed by nearly 90%, resulting in approximately $250 million in losses affecting 75,000 wallet holders.
- The congressional investigation will summon key government officials, including the Economy Minister and Justice Minister, to testify about the scandal.
Argentina’s Chamber of Deputies voted Tuesday to establish a special commission to investigate the LIBRA cryptocurrency scandal that has embroiled President Javier Milei’s administration since February. The measure passed with 128 votes in favor, 93 against, and 7 abstentions, according to the chamber’s official debate.
Congressional Oversight Moves Forward
Representative Pablo Juliano emphasized the importance of congressional scrutiny during Tuesday’s session, stating: "The time has come for Congress to audit whether there is any harm to Argentina: we are committed to the truth." The investigation will summon several high-ranking officials, including Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, Chief of Staff Guillermo Francos, and National Securities Commission head Roberto Silva.
Members of Milei’s La Libertad Avanza party defended the president during the debate. Representative Gabriel Bornoroni suggested the opposition was "creating a show" because "they’re bothered by the fact that we had a fiscal surplus throughout 2024, and this year as well." The commission will have authority to request information from the national government as it conducts its investigation.
Controversial Token Collapse
The LIBRA token scandal began when President Milei promoted the Solana-based meme coin on his official X account, describing it as a "private project" intended to stimulate Argentine economic growth through startup funding. The token’s market capitalization briefly reached $4.5 billion before crashing nearly 90% within hours on February 14-15.
Following the collapse, Milei deleted his promotional post and claimed he "did not know the details of the project." Fraud charges were subsequently filed in an Argentine criminal court. The crash reportedly left approximately 75,000 wallet holders with collective losses exceeding $250 million.
The congressional investigation runs parallel to an ongoing judicial probe examining potential connections between Milei and LIBRA’s developers. In March, an Argentine lawyer called for the arrest of Kelsier Ventures CEO Hayden Davis, who allegedly pitched the project to Milei during a January meeting.
This marks Milei’s second cryptocurrency controversy. In 2022, investors sued him for promoting CoinX, a crypto investment platform that promised significant returns but failed to deliver. A New York-based law firm recently began gathering investors for a potential lawsuit related to the LIBRA scandal.
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