Argentine Congress Votes To Investigate President Milei And The Libra Scandal
The Argentine Chamber has voted to investigate the LIBRA scandal and President Milei. The Chamber backed the creation of a commission of inquiry into the cryptocurrency promoted by President Milei.
LIBRA soared in value after Mileis endorsement but then crashed over 90% in a matter of hours, causing investors to lose hundreds of millions of dollars.
Argentina To Investigate Milei And LIBRA
Deputies from Argentinas lower house voted to create a commission to investigate the LIBRA scandal. The scandal led to retail investors being defrauded of $280 million after President Milei posted about the project on social media. The outcome of the investigation could impact Mileis political future and reshape Argentinas crypto regulatory landscape. The Chamber of Deputies voted to investigate LIBRA and Milei on April 8. The vote created a Special Committee to examine three draft resolutions to probe the scandal. The investigation will focus on the LIBRA tokens dramatic drop after it surged to a market cap of $4.50 billion. The token lost 90% of its value after reaching this level. Investors alleged potential fraud linked to the President after losing millions.
Lower House President Martin Menem has time until April 15 to sign the resolution to establish the investigative committee, and party blocs have until April 11 to propose commission members.
Key Figures To Be Summoned
The committee plans to summon key figures from the government during its investigation, including Chief of Staff Guillermo Francos, Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and the head of the National Securities Commission, Roberto Silva. It will also seek clarification of President Mileis links to Kelsier Ventures, the firm behind the LIBRA token. The investigation comes amid an uproar about financial mismanagement. Investors and opposition leaders have raised serious concerns about transparency, and have asked for accountability from Milei and the administration.
Meanwhile, Gabriel Bornoroni, a Free Front for Unity Party lawmaker, called the investigation a farce, highlighting the deep political tensions surrounding the investigation. President Milei has consistently denied any involvement with the project, stating,
I had no knowledge of the projects details, and my promotional tweets were deleted.
LIBRAs dramatic collapse has also strengthened calls for greater regulation. Reports have suggested that the investigation could lead to stricter crypto regulations in Argentina, potentially impacting future projects. The LIBRA scandal has also influenced market expectations and mainstream crypto adoption in Argentina.
The LIBRA Scam
The price of the LIBRA token surged on February 14 after Argentinian President Javier Milei posted about it on social media. However, its value tanked within hours, and Milei deleted the original tweets shortly after. However, over 75,000 retail investors had lost an estimated $280 million in the alleged rug-pull by this time. The event raised several questions about Mileis ties to the project. Milei had held several meetings with people involved with LIBRAs launch, including businessmen from the US, Singapore, and Argentina, who are now being investigated in local and foreign courts.
Days after the price tanked, Hayden Mark Davis, the owner of the Delaware-registered Kelsier Ventures, claimed he had been working as an advisor to the Milei administration and accused the President of betrayal after he deleted the social media posts related to the cryptocurrency.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Text source: Crypto Daily™
