The Chamber of Deputies in Argentina established a special investigative committee to study the LIBRA meme coin issue, which increased pressure on President Javier Milei’s administration.
Widespread accusations of financial fraud related to LIBRA cryptocurrency drove this government investigation after media companies used their social networks to promote the coin.
The vote passed with 128 lawmakers in favor, 93 opposed, and seven abstaining. The newly formed committee has been given the authority to summon top government officials and request documentation from various public agencies. Expected witnesses include Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and Chief of Staff Guillermo Francos.
Lawmakers demand accountability
Legislators Pablo Juliano and Sabrina Selva emphasized the need for transparency and accountability. According to their committee representatives, all relevant official stakeholders should undergo testimony. Selva expressed her opposition to President Javier Milei, Karina Milei, and spokesperson Manuel Adorni being kept off the initial list because she vowed that the opposition would insist on their appearance before the committee.
Selva warned that avoiding full interpellation risks leaving many key questions unanswered. Other members of Congress echoed her concerns, stating the investigation must identify whether public officials played a role in the events surrounding LIBRA.
LIBRA coin collapse triggers legal action
The controversy erupted after President Milei promoted the LIBRA token on social media, which triggered a surge in its value. Within 40 minutes, the coin jumped from $0.000001 to $5.20, hitting a market cap of $4 billion. Shortly afterward, its creators, who held 70 percent of the supply, sold their tokens, causing the price to crash by over 94 percent to $0.99.
This led to accusations of a pump-and-dump scheme, which Milei denied. Following the backlash, he deleted the posts. On February 17, lawyers and economists filed a formal complaint accusing Milei of misleading the public about the crypto asset.
Wider fallout and investor losses
Blockchain analytics firm Nansen reported that 86 percent of LIBRA investors suffered losses totaling $251 million, while only a tiny group gained over $180 million. Bubblemaps linked the LIBRA developers to prior fraudulent token schemes. The scandal has erased $26 billion from the meme coin sector and hit platforms like Pump.fun.
International legal firms, including Burwick Law, are pursuing class action suits on behalf of defrauded investors. Calls continue to grow for greater transparency from the Milei administration and full disclosure of all individuals involved in