Argentina’s political landscape was shaken on Tuesday after a congressional commission released a hard-hitting investigative report accusing President Javier Milei of allegedly promoting a fraudulent cryptocurrency scheme that wiped out massive sums of investor money earlier this year.
The report, prepared by members of the Chamber of Deputies led mainly by the opposition, stated that the actions surrounding the controversial $LIBRA meme coin “would be compatible with an alleged fraud.” It also placed the “political responsibility” squarely on President Milei and his influential sister, Karina Milei, who plays a central advisory role in his administration.
The scandal centers on the rapid rise and collapse of the $LIBRA token — a coin Milei publicly praised in February through a social media post declaring, “The world wants to invest in Argentina. $LIBRA.” That endorsement triggered a wave of excitement among retail investors, many of whom poured money into the token hoping to benefit from the president’s perceived approval.
Instead, the coin collapsed almost as quickly as it rose. According to industry specialists, the entire operation resembled a classic “rug pull,” a type of crypto scam where developers hype a token, attract large investments, and then vanish with the funds. Within just 24 hours, $LIBRA went from a booming market darling to a catastrophic failure, leaving investors counting losses estimated in the hundreds of millions of dollars.
After public outrage erupted, President Milei distanced himself from the project, claiming he “did not know the details of the project” despite his earlier promotional statement.
In the months that followed, dozens of legal complaints were filed against the president, the developers behind $LIBRA, and other individuals allegedly connected to the scheme. These cases have since been consolidated under a single judge and prosecutor, who are now responsible for leading the ongoing investigation.
The congressional commission stated that it has already forwarded its findings to the court. However, it remains unclear whether Congress will take any additional steps or pursue sanctions, especially as the political landscape shifts. Newly elected legislators — many of them allies of President Milei — are set to take office on December 10. Their presence is expected to reduce the appetite within Congress to escalate the case.
Despite the seriousness of the accusations, the commission was unable to directly question President Milei or his sister. Both ignored summonses for interviews, leaving key questions unanswered and fueling further debate about the administration’s role in the failed cryptocurrency promotion.
For now, the future of the $LIBRA investigation lies in the hands of the judiciary, while Argentines continue to grapple with yet another controversy at the crossroads of politics and digital finance.
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