Special Committee to Probe President Milei’s Role in Libra Meme Coin Scandal

Argentina’s Chamber of Deputies voted to approve the formation of a special congressional committee to investigate the controversial Libra (LIBRA) meme coin scandal, which has tied President Javier Milei to the project.

The vote saw 128 in favor, 93 against, and seven abstentions.

Libra Meme Coin Scandal

According to the report, the committee will have the authority to summon top government officials and demand documentation from public institutions. Key figures expected to testify include Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and Chief of Staff Guillermo Francos.

However, there has been criticism regarding the exclusion of President Milei and his sister Karina from the inquiry. Lawmaker Sabrina Selva, in particular, argued that both should be compelled to clarify their involvement in the LIBRA incident.

The investigation follows accusations that Milei used his influence to promote the LIBRA meme coin. The token had surged in value to $5 and even briefly reached a market capitalization of $4 billion after President Milei shared details about the token on X.

The value, however, collapsed by over 94% once he deleted the post, which sparked suspicions of a pump-and-dump scheme.

In response, lawyers Marcos Zelaya and Jonatan Baldiviezo, joined by engineer María Eva Koutsovitis and economist Claudio Lozano, filed a formal criminal complaint on February 17, wherein the individuals accused Milei of fraud for his role in promoting the cryptocurrency. Several critics have also alleged that the project was a “rug-pull” scam, and Milei was accused of misleading investors by using his considerable social media following of 3.8 million.

Findings Related to LIBRA

On-chain analytics platform Nansen’s report found that 86% of traders who purchased the meme coin lost an estimated $251 million. Only a handful of fortunate investors walked away with profits of more than $180 million.

Subsequent investigation by blockchain analytics firm Bubblemaps linked LIBRA’s creators to previous pump-and-dump operations and even showed evidence of profits funneled through various wallets, including one connected to MELANIA token creators. Despite this, LIBRA creator Hayden Davis dismissed criticism, claimed that those upset missed out on opportunities, and defended meme coin dynamics.