Argentina’s Congress Approves Probe into LIBRA Token Collapse

Highlights:

• Argentina’s Congress approved a probe into the LIBRA token after its crash caused major losses for investors.
• Lawmakers will question top officials about the president’s role in the failed LIBRA crypto project.
• Over 75,000 wallets were affected after LIBRA dropped in value just hours after President Milei promoted it.

Argentina’s Chamber of Deputies voted on Tuesday to approve the creation of a special commission to investigate the LIBRA cryptocurrency scandal, which has surrounded President Javier Milei’s government since February. The motion was passed by 128 in favor, 93 against, and seven abstentions, setting the way for the investigation to begin. A local news outlet reports that the commission will probe events leading to the launch and collapse of a Solana-based meme coin. Milei had featured the coin on social media earlier this year.

On April 9, the Argentine House of Representatives passed a resolution with 128 votes in favor and 93 votes against to establish a special committee to investigate the LIBRA memecoin encryption scandal involving President Milei. https://t.co/akbVI5CYDn

— Wu Blockchain (@WuBlockchain) April 9, 2025

The LIBRA token gained attention after Milei referred to it as a “private project” designed to support economic growth by helping startups. Shortly after his post, the token’s value surged, reaching a market cap of $4.5 billion.

However, this was short-lived. The value of LIBRA dropped nearly 90% within hours on February 14 and 15. The president later deleted the post and stated that he was not fully aware of the project’s details.

Following the token’s collapse, fraud complaints were filed in an Argentine court. An estimated 75,000 wallet holders were affected, with losses exceeding $250 million. As a result, the Chamber’s decision to investigate came after mounting pressure from both opposition lawmakers and citizens. They demanded answers about the coin’s sudden fall and the president’s involvement.

Top Officials Called to Answer Questions in Lower House

During the same session, deputies also approved a motion to summon several high-ranking government officials to appear before the lower house. These include Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, Chief of Staff Guillermo Francos, and Roberto Silva, who leads the country’s National Securities Commission. The motion to summon these officials passed with 131 votes in favor and 96 against.

In addition, a third resolution passed with 135 votes in favor. It will allow the Commission to request documents and reports from the executive branch related to the LIBRA project. Representative Pablo Juliano said during the debate that it was time for Congress to verify whether there had been any damage caused to the country.

While opposition lawmakers pushed for the investigation, La Libertad Avanza party representative Gabriel Bornoroni defended Milei and said the move was part of a political strategy. Bornoroni claimed that critics were targeting the president because of his successful handling of the economy. He also pointed to the fiscal surplus reported throughout 2024 and into this year.

The government attempted to block the session. However, a shift in support from lawmakers allied with provincial governors helped the opposition meet the required quorum. Deputies from Córdoba and Catamarca provinces supported the motion. They joined forces with Unión por la Patria, Democracia para Siempre, Encuentro Federal, Coalición Cívica, and left-wing legislators.

Outside Pressure Builds Around LIBRA Fallout

Beyond the congressional moves, interest in the LIBRA case has also increased outside Argentina. In March, an Argentine lawyer asked for the arrest of Hayden Davis, the CEO of Kelsier Ventures, who allegedly presented the project to Milei in January.

Earlier this month, a law firm based in New York began reaching out to investors. They aim to support a possible lawsuit connected to the token’s crash. Chief of Staff Guillermo Francos is now expected to appear before Congress on April 16. There, he will likely face several questions regarding the LIBRA token scam.