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Argentine Congress to Investigate Cryptocurrency Promoted by President Milei
BUENOS AIRES – The Argentine Congress has approved the formation of a commission to investigate a cryptocurrency, $LIBRA, championed by President Javier Milei. This digital currency experienced a rapid surge in value followed by a dramatic collapse, resulting in substantial losses for investors, estimated in the hundreds of millions of dollars. The congressional inquiry aims to scrutinize the circumstances surrounding the volatile crypto asset and its impact on the Argentine economy and investors.
Milei’s Endorsement and Subsequent Crash of $LIBRA
President Milei, known for his libertarian views, had previously lauded the $LIBRA meme coin as a “private project” intended to “bolster the expansion of the Argentine economy, through funding for small enterprises and Argentine entrepreneurs.” He publicly endorsed the cryptocurrency in a social media post on X on February 14, stating, “The world wants to invest in Argentina. $LIBRA.” However, this post was later removed after the digital currency’s value plummeted.
“Rug Pull” Accusations and Investor Losses
Industry experts have characterized the $LIBRA operation as a potential “rug pull,” a deceptive scheme where developers launch a crypto token, attract investment, and subsequently withdraw their funds, leaving investors with significant losses. Following Milei’s apparent support, $LIBRA’s value initially skyrocketed before experiencing a precipitous decline of 90 percent within a mere two-hour period.
Congressional Inquiry and Official Summons
Despite later claiming a lack of detailed knowledge regarding the project, Milei’s connection to $LIBRA is now under scrutiny. On Tuesday, Argentina’s lower house of Congress overwhelmingly voted 128 to 93, with seven abstentions, in favor of initiating a formal inquiry into the cryptocurrency. This inquiry will examine the movement of over $4.5 billion related to $LIBRA and the estimated $250 million in losses incurred by investors.
Officials Called to Testify
Legislators have also sanctioned a resolution to summon key government figures to provide testimony regarding the affair. Economy Minister Luis Caputo and Justice Minister Mariano Cuneo Libarona are among the senior officials expected to be called before the commission to answer questions concerning the $LIBRA cryptocurrency and the ensuing financial repercussions.
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Judicial Investigation into Milei’s Role
Furthermore, a judge has been assigned to investigate President Milei’s potential involvement with $LIBRA. The investigation will explore allegations of fraud complicity, criminal association, and potential breaches of presidential duties related to the promotion and subsequent collapse of the cryptocurrency. The inquiry seeks to determine the extent of the president’s knowledge and any potential misconduct associated with the $LIBRA project and its impact on Argentine investors.