Failed LIBRA token update: Argentine lawmakers launch investigation into President Milei’s ties to the token

Argentine lawmakers in the lower house have passed a bill to create a special commission to investigate President Javier Milei’s links to the LIBRA token, following a rug-pull incident involving the cryptocurrency project he had publicly endorsed.

The inquiry marks a significant blow to Milei’s administration.

The lower house approved the creation of the commission—an initiative that had previously failed in the Senate—by a vote of 128 to 93.

Milei had earlier championed the LIBRA token in February, promoting it on social media as a potential catalyst for boosting Argentina’s struggling economy.

However, amid recent allegations surrounding the token’s collapse, the president’s optimistic stance is becoming increasingly difficult to defend.

Opposition gains momentum in Congress

According to ZyCrypto, the lower house proceedings extended beyond the formation of the special commission.

Lawmakers, largely from the opposition, also passed several measures aimed at scrutinizing key government officials linked to the LIBRA project.

Among those summoned are Economic Minister Luis Caputo and National Securities Commission Chairman Roberto Silva.

This motion passed with overwhelming support, gaining 131 votes in favor and 96 against.

In addition, legislators successfully secured approval to request key documents and information from the Executive Branch regarding the LIBRA incident. That vote saw 135 votes in favor and 84 opposed.

Opposition representative Pablo Juliano emphasized the need for transparency, stating that Congress must investigate whether the LIBRA token scandal inflicted serious damage on Argentina’s economic stability.

Milei denies wrongdoing amid mounting scrutiny

President Milei has strongly denied any misconduct, describing the investigations as “a classic political witch hunt” amid growing political pressure.

He immediately sought to distance himself from the failed LIBRA project, insisting that there was no direct connection between himself and the token’s collapse.

However, opposition lawmakers remain skeptical, particularly after photos emerged showing Milei alongside the developer behind the LIBRA token.

The incident has quickly escalated into a major political controversy, with critics accusing the president of recklessly promoting a risky asset without adequate due diligence.

As the investigation gathers pace, the political fallout from the LIBRA debacle could further erode confidence in Milei’s leadership, especially at a time when Argentina is grappling with deep economic challenges and market uncertainty.

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