Argentina’s Congress Launches Investigation into LIBRA Memecoin Controversy

Argentina’s lower house of Congress has taken a decisive step toward unraveling the story behind the LIBRA memecoin, a token that gained attention earlier this year when President Javier Milei publicly endorsed it. Lawmakers recently voted to establish a commission tasked with examining the token’s rapid rise and devastating fall, which left investors reeling from losses estimated at over $250 million. The move comes after months of public outcry and growing scrutiny over the government’s role in promoting the project.

The decision emerged from a special session initiated by the “Democracy Forever” bloc, where deputies approved three key resolutions. These include forming an investigative body, summoning high-ranking officials to testify, and requesting detailed information from the executive branch. The measures passed with strong support, though they exposed clear divisions among lawmakers, with some arguing the probe oversteps congressional authority.

Key Figures Called to Testify Amid Rising Tensions

Several prominent officials will face questions as part of the investigation. Chief of Cabinet Guillermo Francos, Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and Roberto Silva, head of the National Securities Commission, are among those summoned, according to an official statement from the Chamber of Deputies. Their testimonies could shed light on how the token, launched in February, went from a presidential talking point to a financial disaster.

President Milei had praised LIBRA on X, describing it as a tool to boost Argentina’s economy by supporting small businesses and local ventures. The endorsement sparked a buying frenzy, driving the token’s value up briefly before insiders reportedly sold off large holdings, triggering a 90% collapse in its market cap. Investors, many of whom saw the president’s backing as a sign of legitimacy, were left with significant losses.

Deputy Pablo Juliano, a key supporter of the investigation, emphasized the need for transparency. He argued that Congress has a responsibility to determine whether the LIBRA fiasco caused broader harm to the nation. Similarly, Maximiliano Ferraro of the Civic Coalition stressed that the public deserves clarity, framing the probe as a fundamental duty of elected officials.

Not everyone in Congress agrees with the approach. Nicolás Mayoraz of the ruling La Libertad Avanza party criticized the effort, suggesting it encroaches on judicial territory and serves as a political stunt. Gabriel Bornoroni, the ruling party’s bloc leader, went further, defending the administration’s economic record and implying that opposition lawmakers are motivated by frustration over Argentina’s fiscal surplus and declining inflation in 2024 and 2025.

The LIBRA controversy has stirred debate beyond the halls of Congress, raising questions about the intersection of politics and cryptocurrency in Argentina. For many investors, the token’s collapse represents more than a financial hit; it’s a breach of trust tied to Milei’s high-profile support. As the investigative commission begins its work, its findings could shape public perception of the administration and influence future oversight of digital assets in the country.

With tensions simmering and stakes high, the coming weeks promise to reveal more about what went wrong with LIBRA. Lawmakers hope their efforts will provide answers, while critics warn of potential overreach. For now, Argentina waits to see how this chapter in its story unfolds.