Argentina's Congress Approves Investigation Of Scam-Ridden LIBRA Token Promoted By President Javier Milei

Argentina's Chamber of Deputies approved a probe Tuesday into the scam-tainted LIBRA token that has embroiled Javier Milei's administration in controversy.

What happened: The lower house voted in favor of three draft resolutions, including the creation of an investigative commission, the questioning of executive branch officials, and a request for information from the government, to investigate the Solana SOL/USD-based cryptocurrency whose pump-and-dump action eroded millions of dollars in investors' wealth.

Representative Germán Martínez from the main opposition bloc, Union for the Homeland, stated, “In a global moment like the one we are experiencing, we must ensure that politics does not become unfocused."

On the other hand, the leader of the ruling La Libertad Avanza party, Gabriel Bornoroni, said that the opposition was "creating a show" to divert attention away from the government’s fiscal surplus achievements in 2024.

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Why It Matters: The president publicly endorsed the LIBRA token in February, causing it to gain billions in market capitalization, only to crash 90% within the next few hours. As of this writing, the token was down 98% from its peak.

The crash sparked allegations of a rug pull, with a renowned Argentine lawyer demanding the international arrest of Hayden Davis, a U.S.-based cryptocurrency entrepreneur allegedly involved in the token launch.

Milei said that he never promoted the coin, and anyone who invested in the coin did so voluntarily. The president has faced calls for impeachment and criminal charges against him over the scandal.

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