On Tuesday, Argentina’s Chamber of Deputies approved three draft resolutions to launch a formal investigation into the controversial $LIBRA cryptocurrency project. The resolutions authorize the creation of a special commission tasked with examining the events and potential misconduct surrounding the token’s promotion and rapid collapse.
The vote passed with 128 in favor, 93 against, and 7 abstentions, setting the stage for a multi-part inquiry that could implicate figures across the Milei administration. The commission’s mandate includes uncovering whether any state-level misconduct contributed to the losses suffered by thousands of Argentine investors.
“The time has come for Congress to audit whether there is any harm to Argentina—we are committed to the truth,” said Representative Pablo Juliano, voicing support during the floor debate.
Not everyone agreed with the move. Gabriel Bornoroni, a member of President Javier Milei’s La Libertad Avanza party, dismissed the initiative as politically motivated.
“The opposition is creating a show because they’re bothered by our fiscal surplus in 2024 and again this year,” he argued.
Despite polarized views, the commission’s formation reflects mounting pressure on the government to address accountability and rebuild public trust in the wake of the $LIBRA fallout.
Top Officials Called to Testify in $LIBRA Inquiry
The newly approved investigative commission will summon several of Argentina’s highest-ranking officials as part of its inquiry into the collapse of the $LIBRA cryptocurrency project. Among those expected to testify are Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, Chief of Staff Guillermo Francos, and Roberto Silva, head of the National Securities Commission. The commission will also formally request documents and data from the national government as it proceeds.
The investigation follows President Javier Milei’s controversial endorsement of the Solana-based $LIBRA token, which he promoted in mid-February as a private initiative intended to spur economic development by funding local entrepreneurs and startups. The token’s market capitalization rapidly surged to $4.5 billion before collapsing nearly 90% within 24 hours.
Milei deleted his endorsement from X (formerly Twitter) shortly after the crash, claiming he was unaware of the project’s full details. Just two days later, criminal fraud complaints were filed in Argentine court. According to estimates, more than 75,000 investors were affected, with combined losses exceeding $250 million.
What began as a seemingly fringe meme coin has now evolved into a political and legal firestorm, drawing intense scrutiny over the intersection of public influence and speculative crypto markets.
Legal Pressure Mounts as Parallel Investigations Unfold
Alongside Argentina’s congressional inquiry, a separate judicial investigation is examining potential ties between President Javier Milei and the developers behind the $LIBRA cryptocurrency. The case gained traction after a prominent Argentine lawyer in March requested the arrest of Hayden Davis, CEO of Kelsier Ventures—the firm allegedly responsible for pitching the project to Milei during a private meeting in January.
Adding to the pressure, a New York–based law firm has issued a call for affected investors to join a potential class action lawsuit, signaling that legal consequences may soon stretch beyond Argentina’s borders.
This is not Milei’s first brush with crypto-related controversy. In 2022, he was sued by investors over his promotion of CoinX, a now-defunct platform that had promised outsized returns before collapsing. With $LIBRA, however, the fallout has been far more widespread—both financially and politically—cementing the token’s failure as a national scandal under global scrutiny.
Quick Facts
- Argentina’s Chamber of Deputies approved a commission to investigate the $LIBRA cryptocurrency scandal.
- Key officials, including Economy and Justice Ministers, are to be summoned for testimony.
- The $LIBRA token’s value collapsed nearly 90% after President Milei’s endorsement.
- Legal actions have been initiated in both Argentina and the United States concerning the scandal.
