Key Takeaways
- The vote, held on April 9, passed with 128 lawmakers in favor, 93 opposed, and seven abstaining.
- In a now-deleted post on X, the president referred to the memecoin as a “private project” designed to stimulate the Argentine economy
Argentina’s Chamber of Deputies has voted to establish a special commission to investigate President Javier Milei’s role in promoting the cryptocurrency token $LIBRA, which saw a dramatic surge and collapse in value earlier this year. The vote, held on April 9, passed with 128 lawmakers in favor, 93 opposed, and seven abstaining.
The inquiry comes amid allegations that Milei’s social media endorsement of the token in February contributed to a market frenzy that left thousands of investors at a loss. In a now-deleted post on X, the president referred to the memecoin as a “private project” designed to stimulate the Argentine economy and support small businesses.
The post triggered a rapid price increase, with the token briefly reaching a $4 billion market capitalization before crashing. Blockchain data later showed that approximately 86% of the wallets that transacted in $LIBRA at a profit or loss of more than $1,000 sold at a loss—amounting to a total estimated loss of $251 million.
Milei later claimed he had not promoted the crypto, stating, “I did not promote that. What I did, I spread the word.” Despite this defense, the impact of his online influence—amplified by his 3.8 million followers—has drawn criticism from opposition lawmakers and legal experts.
Lawyer Jonatan Baldiviezo, along with a group of professionals including economist Claudio Lozano and engineer María Eva Koutsovitis, has filed a complaint accusing Milei of participating in an “illicit association” tied to the promotion of the token. The complaint, also backed by the Observatorio del Derecho a la Ciudad, a civil watchdog group, alleges that the president’s endorsement misled the public and contributed to a large-scale financial loss affecting over 40,000 investors.
More controversy emerged when reports surfaced that one of the individuals linked to the creation of $LIBRA, Hayden Davis, had sent messages boasting about the ability to pay Milei’s sister, Karina Milei, in exchange for favorable publicity from the president. In one message, Davis allegedly claimed, “I send $$ to his sister and he does whatever I say and does what I want.”
The Chamber of Deputies has also approved motions to summon key officials to testify, including Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, Chief of Staff Guillermo Francos, and Roberto Silva, president of the National Securities Commission. Lawmakers are expected to question them on whether there was any coordination or regulatory failure related to the coin’s promotion and subsequent collapse.
La Libertad Avanza party lawmaker Gabriel Bornoroni defended the president during the debate, accusing the opposition of exploiting the issue. “They’re bothered by the fact that we had a fiscal surplus throughout 2024, and this year as well,” he said.
This is not the first time Milei has come under fire for endorsing a crypto project. In 2022, he faced a lawsuit from investors over his promotion of CoinX, a digital investment platform that later collapsed, raising questions about transparency and accountability.
The new commission will examine whether Milei’s actions violated legal or ethical standards and whether regulatory agencies failed to prevent the fallout. The investigation is expected to continue over the coming months as Congress attempts to assess the political and financial implications of the $LIBRA affair.
Despite these setbacks, Argentina remains a top player in crypto adoption, ranking at the top in Latin America for crypto value received, with over $91 billion, as per a report by Chainalysis.
