Argentina's Congress Launches Investigation into LIBRA Failure
Lawmakers have decided to conduct a study into a controversial token backed by President Miley after investors suffered significant losses.
Francisco Rodriguez | Edited by Parikshit Mishra Apr 9, 2025 8:21 AM
Important facts:
- Argentine lawmakers have approved the formation of a commission to investigate the LIBRA token.
- Testimonies will be provided by representatives of the executive branch, including the ministers of economy and justice.
Argentina's lower house of Congress has passed a series of measures aimed at studying the LIBRA cryptocurrency, which has caused a public outcry after being promoted by President Javier Miley earlier this year.
At a special session convened by the Democracy Forever faction, deputies approved three resolutions: on the creation of an investigative commission, on summoning senior government officials, and on requesting information from the executive branch.
Among those summoned were Prime Minister Guillermo Francos, Economy Minister Luis Caputo, Justice Minister Mariano Cuneo Libarona and National Securities Commission President Roberto Silva, according to an official press release from Argentina's Chamber of Deputies. The resolutions passed with a comfortable majority but faced significant resistance, revealing a split along party lines.
“It’s time for Congress to find out if any harm has been done to Argentina: we have an obligation to the truth,” said lawmaker Pablo Juliano, one of the supporters of the initiative. Others, such as lawmaker Nicolás Mayoras of the ruling La Libertad Avanza (LLA) party, protested, accusing lawmakers of usurping “powers that belong exclusively to the judiciary” and politicizing the issue.
Deputy Maximiliano Ferraro of the Civic Coalition stressed that society “has the right to know the truth” and that it is the duty of Congress to “demand and investigate it.” The leader of the ruling party faction, Gabriel Bornoroni, suggested at the end of the debate that opposition legislators were “putting on a show.”
“I think they’re worried that we had a budget surplus in 2024 and that we’re going to continue to have one this year — and that inflation is continuing to decline every month,” Bornoroni said. The failure of the LIBRA memecoin has resulted in the loss of more than $250 million in investor capital, research shows.
The token's value skyrocketed shortly after its launch in early February, with Miley promoting the project on X, claiming it would “focus on stimulating the growth of the Argentine economy, funding small businesses and national enterprises.”
Miley's promotion used various crypto addresses, allowing insiders to dump huge amounts of tokens to these investors, causing the token's market cap to shrink by 90%.
Disclaimer: The information collected for this article was translated using artificial intelligence.
