Nikolas Sargeant
Argentina's lower house has approved an investigation into government officials connected to the controversial Libra token collapse that followed President Javier Milei's social media promotion earlier this year.
Lawmakers voted 128-93 (with seven abstentions) to establish a commission examining potential misconduct surrounding the token's launch and subsequent crash. This revives an inquiry that previously stalled in the Senate.
"It is our duty to demand political explanations; to comply with democratic rules so that they can survive and build a network of trust," Representative Oscar Agost Carreño stated during debates.
Presidential Inner Circle Under Investigation
The committee will summon key administration figures including Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, Chief of Staff Guillermo Francos, and National Securities Commission head Roberto Silva. They will also request documentation from relevant government departments.
This investigation follows President Milei's February X post describing the $LIBRA token as "a private project dedicated to encouraging the growth of Argentina's economy by funding small businesses and startups," which included a link to its smart contract.
Built on Solana's blockchain, the token rapidly surged to over $5 with a market capitalization exceeding US$4.5 billion shortly after Milei's post. Within hours, however, its value plummeted by over 90% after alleged insider selling, causing investor losses estimated up to $250 million.
'Cryptogate' Creates Legal and Political Pressure
Milei subsequently deleted the post, claiming he merely shared information without endorsing the project, and referred the case to the Anti-Corruption Office. Critics, including former president Cristina Kirchner, labeled the incident "Cryptogate" and accused him of promoting a scam.
Over 100 criminal complaints have been filed alleging fraud, market manipulation and breaches of public trust. This congressional probe intensifies pressure on Milei's government to clarify its involvement in both promoting the token and the events that followed.
The scandal raises important questions about political figures engaging with unregulated digital assets in Argentina, a nation already struggling with high inflation and economic instability.
