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Argentine lawmakers have launched an investigation into a crypto controversy involving President Javier Milei, after a memecoin tied to his name triggered widespread investor losses.
The incident centers around LIBRA, a newly launched memecoin that saw its price skyrocket on February 14, shortly after Milei promoted the token on social media. The hype didn’t last long. Within hours, LIBRA’s value collapsed, wiping out an estimated $280 million in investor funds and affecting more than 75,000 retail participants. Milei deleted his posts about the project five hours after publishing them.
Many have since accused the project of being a rug pull—a scam in which creators artificially boost the value of a token through endorsements or marketing, only to abandon it and leave investors with worthless holdings.
The Argentine Chamber of Deputies, the country’s lower legislative house, has approved three separate resolutions tied to the scandal.
The first resolution—calling for the formation of an investigative commission—passed with 128 votes in favor, 93 opposed, and seven abstentions.
The second resolution, which aims to question senior members of the executive branch, received 131 votes in favor and 96 against. Officials named include Chief of Staff Guillermo Francos, Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and National Securities Commission (CNV) head Roberto Silva.
The third resolution, which calls for detailed reports from the national government on LIBRA and related activities, was backed by 135 lawmakers, with 84 voting against and seven abstaining.
With all three resolutions approved, the Chamber of Deputies will now move forward in probing the incident. The focus will be on uncovering whether government officials had any involvement or prior knowledge of the token’s launch and collapse, and whether investors were misled.
There has been a lot happening with LIBRA in the country Opposition lawmaker Leandro Santoro has called for President Milei’s impeachment over the LIBRA memecoin scandal. Meanwhile, Argentine authorities are seeking the arrest of Hayden Davis for alleged pump-and-dump schemes tied to LIBRA and MELANIA tokens.
In the U.S., Burwick Law has filed a class action against La Libertad Avanza, claiming the LIBRA token was launched through misleading tactics that hurt retail investors.