Argentina's Congress has passed bills to create a special commission investigating fraudulent activities involving the LIBRA meme coin, drawing attention to President Javier Milei's administration.
Commission Formation
The vote passed with 128 deputies in favor, 93 against, and seven abstentions. The commission will have the authority to convene high-ranking officials and demand documents. It is expected to hear testimonies from Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and Chief of Staff Guillermo Francos.
Fraud Allegations
Allegations arose from claims that President Milei endorsed trading of the LIBRA token on social media, leading to a sharp price increase. Following Milei's post, the token's price soared from $0.000001 to $5.20. Subsequently, its creators, who owned 70% of the total tokens, dumped them, causing the price to plummet by over 94% to $0.99. This led to accusations of a pump-and-dump scheme, which Milei denied after deleting the promotional posts.
Calls for Transparency
Despite the committee's formation, opposition lawmakers are determined to hold President Milei and his associates accountable. Representative Gabriela Estevez noted that the people of Argentina have the right to understand how the fraud was planned and carried out.
The LIBRA scandal has already caused significant upheaval in the cryptocurrency market, erasing $26 billion in the meme coin sector. Further investigations are anticipated to clarify the details of the incident.
