The Argentine Chamber of Deputies has voted to establish a special committee to investigate the Libra meme coin scandal connected to President Javier Milei, with 128 votes in favor, 93 against, and seven abstentions.
Libra Meme Coin Scandal
The investigation is initiated amid accusations that President Milei used his influence to promote the Libra meme coin, which surged to $5 and briefly reached a market capitalization of $4 billion after his social media promotion. The token's value later collapsed over 94% after the post's deletion, raising suspicions of market manipulation.
Key Figures to Testify
The committee is empowered to summon high-ranking officials and request documentation from public institutions. Key figures expected to testify include Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and Chief of Staff Guillermo Francos. Criticism has arisen over the exclusion of President Milei and his sister Karina from the investigation.
Investigation Findings
A report by analytics platform Nansen revealed that 86% of traders who purchased the meme coin lost an estimated $251 million, while only a handful of investors profited over $180 million. An investigation by Bubblemaps linked LIBRA's creators to previous pump-and-dump operations and revealed evidence of profits funneled through various wallets.
The formation of the committee to investigate the Libra meme coin scandal signals the Argentine legislature's serious approach towards addressing such incidents. Further testimonies are expected to shed light on President Milei's involvement in the situation.
