Argentine President Under Investigation for LIBRA Cryptocurrency Scandal

2 mins mins

Key Points:

President Javier Milei’s LIBRA promotion triggers a congressional investigation.
LIBRA’s value surged briefly before a 90% price crash.
The scandal impacts regulatory discussions on politically endorsed tokens.

Argentina’s Congress has approved an inquiry into President Javier Milei’s alleged involvement in the LIBRA cryptocurrency scandal, which caused investor losses. The House of Representatives initiated the investigation after Milei promoted LIBRA, causing a temporary token price increase.

President Javier Milei’s actions are under scrutiny following allegations of promoting LIBRA, a controversial memecoin classified by some as a “rug-pull” scam. The investigation could affect Argentine political accountability and market regulation.

Congressional Probe and LIBRA Market Turmoil

An investigation into President Javier Milei’s role with the LIBRA cryptocurrency is underway. The House of Representatives supported the probe with 128 votes in favor. Mariano Cúneo Libarona, Justice Minister, said, “The Congress has voted to investigate the legality of Milei’s promotion and related government connections.” LIBRA’s value hit a temporary high of $5 after Milei’s endorsement on social media.

Characterized as a memecoin, LIBRA faced criticism for potential fraudulent actions. Following its value surge, the price plummeted, leading to investor losses. The market’s reaction includes ongoing legal proceedings and calls for regulatory changes.

Government criticism includes accusations of negligence and complicity. Lawyer Joe Jonatan Baldiviezo and others have filed lawsuits against Milei. Milei, meanwhile, deleted his promoting LIBRA posts, arguing ignorance of illegal activities.

LIBRA’s Rapid Rise and Fall: A Cautionary Tale

Did you know? The LIBRA token experienced one of the quickest market caps rises in the memecoin category, reaching $4 billion before plummeting by 90%. This collapse is reminiscent of prior rug-pull incidents incapacitating similar tokens.

CoinMarketCap data shows LIBRA currently trades at $0.05, with a market cap of just over $12.99 million. The decline is stark: a 94.72% drop in 60 days. The trading volume fell by 42.90% within 24 hours as investor confidence wanes.

libra-daily-chart-3 — LIBRA(LIBRA), daily chart, screenshot on CoinMarketCap at 09:38 UTC on April 9, 2025. *Source: CoinMarketCap*

The Coincu research team notes that the LIBRA scandal emphasizes the need for stricter regulations focusing on political endorsements of cryptocurrencies. These measures could include vetting processes and increased transparency to prevent future scams.