Argentina Lawmakers Approve Inquiry Into Officials Linked to Libra Token Scandal

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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April 9, 2025 01:10 EDT

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Argentina’s lower house of Congress on Tuesday voted to launch an investigation into senior government officials linked to the controversial Libra token, which collapsed shortly after President Javier Milei promoted it on social media earlier this year.

Lawmakers approved the motion with 128 votes in favour, 93 against and seven abstentions. The commission, which failed to gain traction in the Senate previously, will examine potential misconduct surrounding the token’s launch and subsequent crash.

“It is our duty to demand political explanations; to comply with democratic rules so that they can survive and build a network of trust,” said Representative Oscar Agost Carreño during the debate.

Milei’s Inner Circle Faces Scrutiny Over Libra Token Collapse

The committee will summon key figures from Milei’s administration, 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 commission will also request documentation from relevant government departments to support its inquiry.

The decision follows weeks of political fallout from a February post made by President Milei on his official X account. In the message, Milei described the $LIBRA token as “a private project dedicated to encouraging the growth of Argentina’s economy by funding small businesses and startups,” and included a link to its smart contract.

The token, built on the Solana blockchain, surged in value moments after the post, jumping to over $5 and reaching a market capitalisation of more than US$4.5b. But within hours, the price collapsed by over 90% after insiders allegedly sold their holdings, triggering investor losses estimated at up to $250m.

‘Cryptogate’ Fallout Sparks Legal and Political Pressure in Argentina

Milei later deleted the post and claimed he had only shared the information, not endorsed the project. His administration referred the case to the Anti-Corruption Office for review. Critics, however, accused him of promoting what they described as a scam. The incident was dubbed “Cryptogate” by opposition figures including former president Cristina Kirchner.

More than 100 criminal complaints were filed, alleging fraud, market manipulation and breaches of public trust.

The newly approved congressional probe adds further pressure on Milei’s government to clarify its involvement in the token’s promotion and the events that followed.

The case has raised broader questions about the risks of political figures engaging with unregulated digital assets in Argentina, a country already grappling with high inflation and economic instability.