Argentina's Chamber of Deputies has voted to establish a special commission investigating the controversial LIBRA cryptocurrency scandal that has embroiled President Javier Milei's administration since February.
The lower house approved three draft resolutions with 128 votes in favor, 93 against, and 7 abstentions, paving the way for a formal probe into the failed crypto project that caused over $250 million in losses.
The commission will summon key government officials including Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, Chief of Staff Guillermo Francos, and National Securities Commission head Roberto Silva for questioning.
"The time has come for Congress to audit whether there is any harm to Argentina: we are committed to the truth," said Representative Pablo Juliano during Tuesday's debate.
The controversy erupted after President Milei promoted the Solana-based LIBRA token on his official X account as a "private project" meant to boost Argentina's economy through startup funding. The token's value briefly surged to a $4.5 billion market cap before crashing nearly 90% within hours on February 14-15.
Milei deleted his promotional post following the crash, claiming he "did not know the details of the project." Two days later, fraud charges were filed in an Argentine criminal court. Approximately 75,000 wallet holders suffered losses in what Forbes magazine called the "largest-ever crypto theft."
The congressional investigation runs parallel to an ongoing judicial probe examining potential connections between Milei and LIBRA's developers, including Kelsier Ventures CEO Hayden Davis, who allegedly pitched the project to Milei in January.
Government allies attempted to block the investigative session, but support from provincial governors' representatives enabled the required quorum. This marks Milei's second crypto-related controversy, following a 2022 lawsuit over his promotion of CoinX, a failed crypto investment platform.
A major cryptocurrency scandal has unfolded as blockchain analysts revealed concerning connections between the recently collapsed LIBRA meme coin and several questionable crypto projects, including the MELANIA token. The investigation gained momentum after LIBRA's dramatic rise and fall following a brief endorsement by Argentina's President Javier Milei. The token's market cap surged to $4.5 billion before plummeting by 90% amid suspicious trading activity. Chaofan Shou, co-founder of Fuzzland, exposed evidence linking LIBRA's market maker in Delhi to the team behind the MELANIA meme coin. Wallet data suggests the same entity controlled both projects, along with other controversial tokens like Enron and OGME. These projects displayed similar patterns - rapid price increases driven by insider trading and automated bots, followed by sudden sell-offs that left retail investors with substantial losses. In LIBRA's case, insiders reportedly withdrew $107 million shortly after the price surge. KIP Protocol, an entity connected to LIBRA, has denied involvement in any wrongdoing. CEO Julian Peh stated that all funds remain traceable on-chain and emphasized KIP had no role in the token's launch. Meanwhile, Hayden Davis of Kelsier, LIBRA's market maker, shifted blame to President Milei's team. Davis claimed the deletion of promotional posts by Milei's office triggered panic selling. He announced plans to reinvest $100 million into the project and burn acquired tokens. The controversy has sparked calls for investigation into potential market manipulation. Critics have even demanded President Milei's impeachment over his brief endorsement of the project before distancing himself. This incident adds to growing concerns about speculative meme coins, particularly those associated with high-profile figures. While project insiders maintain LIBRA's legitimacy, investigators continue examining its ties to previous cryptocurrency schemes that followed similar collapse patterns.