- Argentina’s Congress is investigating government officials connected to the Libra token.
- The token collapsed after President Milei promoted it on social media, causing significant investor losses.
The lower house of Congress has approved an investigation into potential misconduct related to the Libra token. This inquiry aims to uncover the truth behind the token’s sudden rise and fall, and the role of government officials in the debacle.
The Libra Token Controversy
Argentina’s Congress has launched a formal inquiry into government officials linked to the controversial Libra token, which experienced a dramatic surge and collapse earlier this year. The investigation was triggered by President Javier Milei’s promotion of the token on social media, which led to significant financial losses for investors.
The congressional motion passed with a clear majority, signaling a serious intent to examine potential wrongdoing. “Deputies | Voting by bloc of the Cryptogate investigative commission $LIBRA. Cryptogate: Deputies approved the creation of an investigative commission. In favor 128, Against 93, Abstentions 7, ” as reported by Elecciones Argentina.
The investigation will focus on key figures within Milei’s administration, including the Economy Minister, Justice Minister, Chief of Staff, and the head of the National Securities Commission. Lawmakers will summon these officials and request relevant documentation to understand the extent of their involvement.
The controversy stems from a post that President Milei made on X in February. In the post, he described the Libra token as a project designed to boost Argentina’s economy by funding small businesses and startups. He even shared a link to the token’s smart contract.
Following Milei’s endorsement, the Libra token, built on the Solana blockchain, saw its value skyrocket, briefly reaching a market capitalization of over US$4.5 billion. However, this surge was short-lived. Within hours, the token’s price plummeted by over 90% amid allegations of insider trading. Investors reportedly lost up to $250 million in the collapse.
President Milei later deleted his post, claiming he was merely sharing information and not endorsing the project. His exact words,
I was not aware of the details of the project and once I found out, I decided to not continue giving it publicity.
The administration referred the matter to the Anti-Corruption Office, but critics argue that Milei’s initial promotion was a major misstep. Opposition figures have labelled the incident “Cryptogate,” demanding a full and transparent investigation.
Over 100 criminal complaints have been filed, accusing people of fraud, market manipulation, and breaking the public’s trust. Now, with Congress stepping in to investigate, Milei’s government is under even more pressure to explain what happened and what role they played. The whole situation shows how risky it can be when politicians get involved with unregulated digital assets, especially in a country already dealing with economic problems and high inflation.
The goal of the investigation is to figure out if any laws were broken and to stop this from happening again. Today, LIBRA is trading at $0.05190, down 3% in the last 24 hours, with a trading volume of $9.47M down 44%.