Argentine House Probes Libra Memecoin Scandal Involving President

3 mins mins

Key Points:

Argentine lawmakers investigate President Milei for involvement in $LIBRA memecoin collapse.
Over $250 million investor losses lead to scrutiny of government officials.
Calls for regulatory measures to increase transparency in crypto endorsements.

Argentine lawmakers have initiated an official inquiry into President Javier Milei related to the $LIBRA memecoin venture following its dramatic value decline.

The investigation into President Milei’s role comes amid widespread financial and political repercussions, prompting both national and global scrutiny.

President Milei Under Investigation for $250M Crypto Losses

The Argentine House of Representatives has approved an investigation into President Javier Milei and his associates over their involvement in the $LIBRA memecoin affair. Milei’s public endorsement of the coin in February led to soaring market interest, but its value subsequently collapsed, costing more than $250 million in investor losses. Lawmakers are examining whether government officials were complicit in the alleged “rug pull” orchestrated by Kelsier Ventures, the firm behind $LIBRA.

Immediate implications of this investigation focus on potential legal ramifications for involved parties, including CEO Hayden Davis, who faces an Interpol red notice request. Kelsier Ventures stands accused of manipulating token value, leading to intensified scrutiny by regulatory authorities.

“After the token’s value crashed, Milei deleted his post, distanced himself from the scandal, and denied prior knowledge of the project specifics.” – President Javier Milei

The scandal has triggered strong reactions. Opposition parties are calling for Milei’s impeachment, and public trust in government transparency is under threat. Political analyst Diana Moreno stated, “This controversy questions the integrity of digital asset promotion by high-profile political figures.” Amid widespread backlash on social platforms, the crypto community demands increased regulatory oversight.

LIBRA Memecoin: A Case Study in High-Stakes Crypto Failures

Did you know? The $LIBRA memecoin scandal is reminiscent of past crypto frauds, showcasing high-profile endorsements and inflated market values that often precede rapid downturns.

According to CoinMarketCap, LIBRA’s current price is $0.05 with a market cap of $13,991,687. The token, issued by Kelsier Ventures, has experienced a severe downturn, as evidenced by a 94.31% loss over the past 60 and 90 days. Over the last seven days, it fell 10.69%, and trading volumes plummeted by approximately 55.97% to $9,443,442. The token’s fully diluted market cap stands at $54,563,562, with a circulating supply of 256,429,139.

libra-daily-chart-2 — LIBRA(LIBRA), daily chart, screenshot on CoinMarketCap at 06:07 UTC on April 9, 2025. *Source: CoinMarketCap*

Analysts from Coincu suggest that increased regulatory emphasis could arise as authorities aim to prevent future anomalies in crypto promotions. Expectations include stricter identification tagging for coins, aiming to bolster transparency and accountability within this market segment.