Argentina Congress backs investigation into officials over Libra memecoin

Argentina's Chamber of Deputies voted to advance three draft resolutions to investigate government officials connected to the Libra memecoin scandal earlier this year, widely known for the country's president Javier Milei's involvement.

The draft resolutions include the establishment of a dedicated commission to investigate the memecoin, the summoning of various officials of the Executive Power and a request for a report from the government regarding Libra, according to the statement from the Chamber of Deputies.

The list of officials to be summoned includes the country's chief of staff, minister of economy, minister of justice and head of the National Securities Commission (CNV). 

"It is time for congress to audit whether there is harm to Argentina; we have a commitment to the truth," Pablo Juliano, a representative of the Democracia para Siempre block in the Chamber of Deputies, said in a translated statement.

However, Representative Nicolás Mayoraz of the La Libertad Avanza party said that the proposed investigation is an "interference" and that it should “respect the division of state powers.”

Milei and Libra

Solana-based Libra was created on Feb. 14 by Delaware-based Kelsier Ventures.

Hours after the launch, Milei made a post on social media platform X promoting the Libra cryptocurrency project and claimed it would fund small businesses and startups to bolster Argentina’s economy. 

Milei's post, which called the cryptocurrency a "private project," included a link to the token's website and its contract address on Solana.

Following his endorsement, Libra quickly surged to a fully diluted market cap of over $2 billion and then crashed to lose more than 90% of its value. 

Milei proceeded to rescind his support for the project after the token value collapsed, and claimed he did not have advanced knowledge of the token project. Some members in Milei's opposition political party called for his impeachment, while a number of Argentinian lawyers have reportedly  charged Milei with fraud.

Meanwhile, Kelsier Ventures CEO Hayden Davis came forward on Feb. 16 and said he was Milei's advisor on his involvement with Libra and worked closely with the president’s team.

Davis said in another video interview with YouTuber Coffeezilla that Libra's team "sniped" the token at launch to deter others from doing the same. "Sniping" refers to a strategy where traders quickly purchase newly launched tokens at its lowest price and sell once the price jumps.

The Kelsier CEO also said he was involved in the MELANIA memecoin, launched by U.S. First Lady Melania Trump. The token also surged and crashed in value within a short period.

While an Argentine prosecutor requested the Interpol to issue a Red Notice on Davis, reports emerged last month that the Kelsier CEO was once again involved in a new memecoin that swiftly plummeted in value.