- The Argentine Chamber of Deputies has approved the formation of a commission to investigate the $LIBRA cryptocurrency scandal
- Key government officials, including ministers of Economy and Justice, are summoned to testify regarding their involvement
- The investigation aims to address allegations of fraud and the significant financial losses suffered by investors
Argentina’s lower house has established a commission to probe the $LIBRA cryptocurrency debacle, with plans to question high-ranking officials about their roles. This initiative seeks to uncover the circumstances that led to substantial investor losses and potential fraudulent activities. In February, President Javier Milei’s direct promotion of the coin on social media sparked particular concern, raising questions about the administration’s potential role in legitimizing a risky financial scheme.
$LIBRA Promotion Tipped the Scales of Decency
The $LIBRA controversy began on February 14, 2025, when President Javier Milei promoted it through his social media channels, describing it as a private initiative aimed at boosting Argentina’s economy by funding small businesses and startups. Following his endorsement, the value of $LIBRA surged dramatically, attracting approximately 40,000 investors.
However, the cryptocurrency’s value plummeted shortly thereafter, leading to significant financial losses for investors. Investigations revealed that $LIBRA had been created just minutes before President Milei’s announcement, raising suspicions of a coordinated fraudulent scheme. Calls for an investigation were immediate, with impeachment mooted in a worst-case scenario.
Investigative Commission Appointed
The Argentine Chamber of Deputies voted to create a special commission tasked with investigating the $LIBRA scandal during a parliament session on Tuesday. The motion, which passed with 128 votes in favor, 93 against, and seven abstentions, will “investigate the succession of events linked to the promotion and dissemination of the LIBRA cryptocurrency that led to significant financial losses for both local and foreign investors.”
In addition to forming the commission, the Chamber of Deputies resolved to summon several high-ranking government officials to testify on April 22. Those called to appear include Chief of Cabinet Guillermo Francos, Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and Roberto Silva, head of the National Securities Commission. The officials are expected to provide explanations regarding their involvement and any knowledge they had about the $LIBRA project.
Political Repercussions
The $LIBRA scandal has led to political turmoil for President Milei’s administration, marking the second major legislative defeat in less than a week. The opposition, along with factions within former allies, has been instrumental in pushing for accountability.
Beyond the congressional inquiry, judicial investigations are underway in both Argentina and the United States to determine the extent of the fraud and any potential complicity by government officials. The outcome of these investigations could have significant implications for the current administration and its economic policies.
