Argentina’s Legislative Action on LIBRA Cryptocurrency
On Tuesday, the legislative body of Argentina, known as the Chamber of Deputies, took significant action by passing three resolutions aimed at launching a special investigative committee focused on the LIBRA cryptocurrency debacle. This issue has been a source of contention for President Javier Milei’s administration since it first emerged in February.
Voices of Concern and Defense
During the session, Representative Pablo Juliano voiced the urgent need for transparency, stating:
“It is time for Congress to evaluate any potential damage to Argentina: we are devoted to uncovering the truth.”
Meanwhile, Gabriel Bornoroni, a member of the La Libertad Avanza party, defended President Milei, alleging that the opposition is merely staging a ‘show’ due to their dissatisfaction with the administration’s fiscal surplus through both 2024 and the current year.
Details of the Investigative Commission
The proposal for the investigative commission received backing from 128 votes, while 93 members opposed it and 7 abstained. This commission is set to convene and call upon several key figures within the government, including:
- Economy Minister Luis Caputo
- Justice Minister Mariano Cúneo Libarona
- Chief of Staff Guillermo Francos
- Roberto Silva, the chair of the National Securities Commission
Additionally, the committee will seek records and documents from the national government to facilitate their inquiry.
Background of the LIBRA Controversy
This congressional investigation follows a sequence of events that began when President Milei advocated for the LIBRA token on social media, promoting it as a private initiative intended to spur economic growth in Argentina through startup investments. The enigmatic token initially surged to a market valuation of approximately $4.5 billion before plummeting by nearly 90% between February 14 and 15, resulting in significant financial losses for investors.
Following the crash, which left around 75,000 holders facing over $250 million in losses, Milei removed his promotional content, claiming ignorance about specific project details. In the aftermath, a criminal complaint was lodged against him, intensifying scrutiny over the incident.
Ongoing Investigations
The congressional inquiry is aligned with existing judicial investigations into potential ties between Milei and the LIBRA’s developers. In March, one attorney even requested the arrest of Hayden Davis, the CEO of Kelsier Ventures, who is said to have discussed LIBRA with Milei during a January meeting. Furthermore, a New York law firm recently called for investors to support legal action against those involved.
Previous Cryptocurrency Entanglements
Notably, this scandal marks Milei’s second entanglement with cryptocurrency, as he was previously sued by investors in 2022 for endorsing CoinX, another crypto investment scheme that failed to meet its promised returns.
