TL;DR
- Congress Investigates LIBRA Crash: Argentina’s Congress has launched a bipartisan probe into President Milei’s alleged role in the LIBRA token’s rise and catastrophic 90% crash.
- Allegations of Fraud: Experts label the crash a “rug-pull,” with lawsuits accusing Milei and others of inflating LIBRA’s value before its sudden collapse.
- Political and Regulatory Implications: The scandal highlights the need for stricter cryptocurrency regulations, while opposition leaders claim it exposes vulnerabilities in political endorsements of digital assets.
Argentina’s political landscape has been shaken as Congress launches an investigation into President Javier Milei’s alleged involvement in the LIBRA cryptocurrency scandal. The probe comes after the LIBRA token, a Solana-based memecoin, experienced a meteoric rise followed by a catastrophic 90% crash, leaving thousands of investors grappling with significant losses.
Congress approved the investigation with 128 votes in favor, signaling a bipartisan effort to uncover the truth behind the controversial LIBRA token’s collapse. The inquiry will focus on Milei’s promotion of LIBRA, which critics claim played a pivotal role in its initial surge and subsequent downfall.
LIBRA’s Rise and Fall
LIBRA gained widespread attention in February when President Milei endorsed it on social media, describing it as a private initiative aimed at boosting Argentina’s economy. The endorsement led to a rapid increase in LIBRA token’s value, with its market cap soaring to $4.5 billion.
However, the euphoria was short-lived. Within hours, the LIBRA token’s value plummeted, erasing billions in market capitalization and leaving over 75,000 wallet holders with losses exceeding $250 million.
The crash has been labeled a “rug-pull” by experts, a term used to describe fraudulent schemes where creators inflate a token’s value before cashing out. Allegations of fraud and criminal collusion have since surfaced, with lawsuits filed against Milei and other key figures involved in the project.
Congressional Action and Public Outcry
The investigation will summon high-ranking officials, including Economy Minister Luis Caputo and Justice Minister Mariano Cúneo Libarona, to testify. Lawmakers have also approved motions to request detailed reports from the executive branch and to establish a special commission to oversee the inquiry.
Opposition leaders argue that the scandal highlights the need for stricter regulations on political endorsements of cryptocurrencies. Meanwhile, supporters of Milei claim the investigation is a politically motivated attack aimed at undermining his administration.
The Road Ahead
As the investigation unfolds, it raises critical questions about the intersection of politics and cryptocurrency. For investors and policymakers alike, the LIBRA scandal serves as a cautionary tale, emphasizing the need for transparency and accountability in the rapidly evolving world of digital assets.
