Argentine Committee to Investigate LIBRA Cryptocurrency Scandal

2 mins mins

Key Points:

The Argentine Chamber voted to investigate the LIBRA scandal and President Milei.
Market reaction wiped $250 million in February.
Committee will summon key officials for expanded inquiry.

Javier Milei, President of Argentina, is implicated in a scandal related to the collapse of the LIBRA cryptocurrency, prompting Congress to commission an investigative committee. The outcome may affect Milei’s political future and reshape Argentina’s crypto regulatory landscape.

The Argentine Chamber of Deputies voted on April 8, 2025, to investigate the LIBRA cryptocurrency incident involving President Javier Milei. A special committee was approved to examine three draft resolutions to probe the scandal. The investigation focuses on the token’s dramatic fall in February 2025, after it climbed to a $4.50 billion market cap before plummeting 90%. Allegations suggest potential fraud linked to Milei, with many investors claiming substantial losses.

Argentine Chamber Probes LIBRA’s $4.50 Billion Crash

The committee intends to summon key figures, such as Minister of Economy Luis Caputo, to clarify Milei’s links to Kelsier Ventures, the firm behind LIBRA. This move by Congress comes amid criticism and a public uproar over financial mismanagement. Investors and opposition voices have raised concerns over transparency, pressing for accountability from Milei and associated parties.

Gabriel Bornoroni, a Free Front for Unity Party lawmaker, labelled the investigation as a “farce”, highlighting political tension and sparking further debate.

“I had no knowledge of the project’s details, and my promotional tweets were deleted.” – Javier Milei, President of Argentina.

LIBRA’s Market Fallout Spurs Calls for Stricter Regulations

Did you know? The LIBRA collapse echoes past crypto controversies, such as the Diem project, reflecting regulatory challenges politically-linked tokens face globally.

According to CoinMarketCap, LIBRA’s current trading volume has decreased by a staggering 59.62%, standing now at $8,774,162. The project has a drastically declined market cap of approximately $13.66 million. Over the past 60 days, the token’s value has dropped 94.45%, continuing a downward trajectory.

libra-daily-chart — LIBRA(LIBRA), daily chart, screenshot on CoinMarketCap at 02:37 UTC on April 9, 2025. *Source: CoinMarketCap*

Coincu research indicates that the investigation may lead to tighter crypto regulations in Argentina, potentially affecting future projects. The LIBRA incident symbolizes challenges in project assurance, influencing market expectations and mainstream adoption reluctance.