Argentina’s Congress Approves Investigation into LIBRA Cryptocurrency Issues
Argentina's lower house of Congress has approved measures to investigate the LIBRA cryptocurrency, promoted by President Javier Milei. Key points include:
- Formation of an investigative commission
- Summoning of top government officials including Chief of Cabinet Guillermo Francos and Economy Minister Luis Caputo
- A formal request for information from the executive branch
The resolutions passed with a comfortable majority but faced opposition, highlighting divisions among parties. Deputy Pablo Juliano emphasized the need for an audit to protect Argentina's interests. In contrast, Deputy Nicolás Mayoraz criticized the move as overreach.
Deputy Maximiliano Ferraro stated that society deserves transparency, while ruling party leader Gabriel Bornoroni accused opposition members of politicizing the issue. The LIBRA memecoin incident resulted in the loss of over $250 million in investor wealth, with a 90% drop in market capitalization following initial promotion.
The token had surged after its launch in February, aimed at supporting small businesses and the Argentine economy. Insiders reportedly sold large amounts shortly after launch, leading to significant losses for investors.