Argentina’s Legislative Investigation Puts LIBRA Crypto Controversy Under the Spotlight

The Argentine Chamber of Deputies has passed three draft resolutions to probe the LIBRA token scandal, signaling growing concerns over its potential impact on the nation’s economy and financial security.

The scandal first emerged earlier this year when reports linked the cryptocurrency to President Javier Milei. The token allegedly was part of a rug pull, leading to losses totaling around $107 million.

Argentine Lawmakers Launch Inquiry into LIBRA Token Scandal

In the special session on April 8, Argentine lawmakers voted 128-93 to create a commission to investigate the LIBRA controversy. Another resolution was approved to summon various high-ranking officials for questioning. 

Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, Chief of Staff Guillermo Francos, and Roberto Silva, Head of the National Securities Commission (CNV), are among those facing inquiries. This initiative was approved with 131 votes in favor and 96 against.

Lastly, the chamber also approved a request for the Executive Branch to provide detailed reports on the token. This request received 135 votes in favor and 84 against.

Notably, in the debate, lawmakers expressed differing views on the resolutions.

“The time came for Congress to audit whether there is harm to Argentina. We have a commitment to the truth,” said Deputy Pablo Juliano.

Deputy Karina Banfi emphasized that investigations into LIBRA were already underway, both nationally and internationally. She suggested that the government should focus on strengthening laws that could directly benefit the people.

“Society has the right to know the truth, and this Congress, each one of us, the duty to demand it and to investigate it,” Deputy Maximiliano Ferraro stressed.

However, not all deputies supported the measures. Nicolás Mayoraz argued that the move was an overreach into the judicial branch’s jurisdiction. 

“Our bloc proposed an opinion of rejection for the excess of this Commission proposal, fundamentally because it arrogates powers that are proper to the Judiciary,” Mayoraz claimed.

Meanwhile, Gabriel Bornoroni, the head of the ruling bloc, suggested that opposition parties were more focused on generating a spectacle than addressing the substance of the issue. 

“I think it bothers them that all of 2024 we had a fiscal surplus and this year too, it bothers them that inflation continues to drop every month,” he claimed.

This isn’t the first time the LIBRA token and its linked parties have been the center of scrutiny. Recently, BeInCrypto reported that Judge Sandra Arroyo Salgado was investigating Milei’s assets and whereabouts during the LIBRA scandal. Moreover, right after the incident, the anti-corruption office also launched an inquiry into the President.

The controversy has also impacted Milei’s reputation in the country, with the majority expressing distrust in him. For Milei, the investigation marks yet another hurdle in his presidency. Once hailed as a visionary for his embrace of cryptocurrencies like Bitcoin (BTC), the President now faces accusations that his administration’s involvement with digital assets may have crossed ethical lines.