Argentina Launches Investigation into LIBRA Memecoin Scandal Linked to President Milei

Lawmakers in Argentina have launched a formal investigation into the LIBRA memecoin scandal, which has been linked to President Javier Milei. The probe follows widespread public backlash after Milei publicly promoted the coin on February 14, sparking a rapid price surge followed by a dramatic collapse. The lower house of Congress voted to launch the investigation, with 128 votes in favor, 93 against, and seven abstentions. The commission aims to identify possible misconduct surrounding the Libra token’s launch and its subsequent crash.

The investigation will include summoning key government officials, such as Chief of Staff Guillermo Francos, Roberto Silva, who leads the country’s National Securities Commission, Justice Minister Mariano Cúneo Libarona, and Economy Minister Luis Caputo. These officials will be requested to provide information as the investigation progresses. Representative Oscar Agost Carreño emphasized the commission’s commitment to seeking justice, stating, “It is our duty to demand political explanations; to comply with democratic rules so that they can survive and build a network of trust.”

The probe comes nearly two months after Milei promoted the Solana-based memecoin on his official X account, describing it as “a private project dedicated to encouraging the growth of Argentina’s economy by funding small businesses and startups.” Shortly after the token’s collapse, Milei deleted the post and claimed he only shared information about the digital asset without endorsing it. However, critics accused him of promoting a scam project, leading to the incident being dubbed “Cryptogate” by opposition figures.

The scandal has led to legal action, with Burwick Law filing a lawsuit in New York’s Supreme Court against various entities tied to the Libra memecoin, including Meteora, Kelsier Ventures, and KIP Protocol. The downfall of Libra resulted in the loss of around $250 million of investors’ funds, highlighting the severity of the fraud allegations.

The investigation into the LIBRA memecoin scandal underscores the growing concerns about cryptocurrency regulation and the potential risks associated with digital assets. The probe aims to hold accountable those responsible for the fraud and to restore public trust in the government’s handling of financial matters. As the investigation unfolds, it will be crucial for lawmakers to thoroughly examine the events leading up to the scandal and to implement measures to prevent similar incidents in the future.