Argentina’s Chamber of Deputies on Tuesday, approved three proposals aimed at launching a special commission to investigate into the LIBRA memecoin scandal. The controversy has been a cause of concern for President Javier Milei’s administration since February.
The LIBRA Scandal
Initially, the Libertarian President praised the LIBRA memecoin as a private initiative to boost Argentina’s economy by supporting small businesses. On 14th of February, in an X post he wrote that “the world wants to invest in Argentina. $LIBRA”, however he soon deleted the post later after the coin crashed.
Experts note this project as a ‘rug pull’, a scam where creators pump a crypto token’s value before quickly cashing it out. Notably, LIBRA soared in value after Milei’s post but crashed 90% in just 2 hours. However, Milei backed off later saying that he was not aware of the project’s details.
Congress Launches $LIBRA Probe as Pressure Mounts
On Tuesday, Argentina’s lower house voted 128–93 (with 7 abstentions) to launch an investigation into the LIBRA scandal. Over 75,000 retail investors lost about $280 million in over the alleged rug-pull scam. This sparked serious questions over the President’s ties to the project and his ties to the project and whether he allowed it to happen.
Besides, Lawmakers also approved a motion to summon Economy Minister Luis Caputo, Justice Minister Mariano Cuneo Libarona, and other top officials to testify over it. Meanwhile, a judge has been assigned to investigate President Milei’s ties to LIBRA amid allegations of fraud, criminal collusion, and breach of his duties.
Pablo Juliano, a representative of the Democracia para Siempre bloc urged Congress to investigate if Argentina was harmed, and emphasized that they’re committed to finding the truth. In contrast, Nicolás Mayoraz from the ruling La Libertad Avanza party called the probe an “interference” and argued that it disrespects the separation of powers.
President’s Ties Questioned
Milei had also previously conducted meetings with people involved in the coin’s launch including businessmen from US, Singapore and Argentina, who are now under investigation in local and foreign courts. Furthermore, after the crash, LIBRA creator Hayden Davis also accused Milei of “betrayal” for deleting posts and claimed that he was an advisor to the government.
The case has sparked bigger concerns over politicians getting involved with unregulated digital assets, especially in a country like Argentina which is already struggling with high inflation and economic instability.
LIBRA is a memecoin project that quickly gained value after being publicly praised by President Milei but crashed 90% within hours. Experts believe that it was a “rug pull” scam, causing investors to lose millions.
Over 75,000 retail investors reportedly lost around $280 million in the suspected scam.
