Argentina's Congress approves investigation into Libra scandal

Argentina's Chamber of Deputies has voted to establish a special commission to investigate the LIBRA (CRYPTO:LIBRA) cryptocurrency scandal that has embroiled President Javier Milei's administration since February 2025.

The vote, which passed with 128 in favor, 93 against, and 7 abstentions, authorises the creation of an Investigative Commission to examine the circumstances surrounding the LIBRA token's promotion and subsequent collapse.

The commission will summon key government officials, including Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, Chief of Staff Guillermo Francos, and Roberto Silva, head of the National Securities Commission.

The LIBRA scandal began when President Milei promoted the Solana-based (CRYPTO:SOL) meme coin on his official X account in mid-February.

The token's value quickly surged to a $4.5 billion market cap before crashing nearly 90% within hours.

Milei later deleted his promotional post and claimed he "did not know the details of the project".

The collapse reportedly affected approximately 75,000 wallet holders, with losses exceeding $250 million.

The congressional investigation runs parallel to an ongoing judicial probe examining possible links between Milei and LIBRA's developers. 

In March, an Argentine lawyer called for the arrest of Kelsier Ventures CEO Hayden Davis, who allegedly pitched the project to Milei during a January meeting.

Opposition representatives argue that the investigation is necessary to uncover the truth, while Milei's supporters claim it is politically motivated.

The scandal has sparked intense debate and legal action, including fraud charges filed against Milei in an Argentine criminal court.

This marks Milei's second cryptocurrency-related controversy, following a 2022 lawsuit over his promotion of CoinX, a crypto investment platform that failed to deliver promised returns.