Lawmakers in Argentina’s lower house voted on Tuesday to investigate President Javier Milei’s alleged ties to the LIBRA cryptocurrency scandal. The chamber approved the creation of a commission with 128 votes in favor and 93 against. Seven lawmakers abstained.
The action renews an earlier proposal rejected by the Senate. LIBRA memecoin became popular following Milei’s endorsement in February in a social media statement in favor of supporting local businesses and expanding the country’s economy.
Investors poured in quickly enough. In hours, $LIBRA had spiked. It tanked afterward. It fell in value by 90 percent. Investors had lost approximately $250 million. Experts referred to it as a rug pull. The token came as quickly as it went. Developers had sold out. The damage had spread rapidly.
Forbes Calls It Biggest Crypto Theft
A later Forbes article would refer to it as the biggest-ever crypto heist. The token had traded over $4.5 billion before it crashed. Milei had his social media post about the coin removed shortly after the crash occurred. There was public outrage that followed. Legal action accelerated.
The new commission will examine the launch of the token. It will also check whether Milei or others in government broke the law. Lawmakers approved a second motion to summon top officials. These include the ministers of justice and economy, the cabinet chief, and the head of the national securities commission.
They must now appear before Congress. Milei and his sister Karina, who serves as his chief of staff, will not testify. Congress also approved a third vote to demand official documents from the Executive Branch.
Federal Judge to Lead $LIBRA Investigation.
A federal judge will preside over the LIBRA investigation. Possible fraud, criminal affiliations, and abuse of power are included in the case. Affected investors have already filed fraud complaints in U.S. courts.
Milei’s administration attempted to close down the session. Initially, numbers seemed too few for voting purposes but were rescued at the eleventh hour by last-minute shifts in lawmakers’ alliances with those in charge at the provinces.
The opposition coalition Unión por la Patria led the charge, with leftist blocs and minor dissident factions supporting it. Speaker Martín Menem tried to cool things down by calling for an April 16 report by the office of the cabinet chief. That session now is promising to address the $LIBRA case.
