Argentina Launches Congressional Investigation into $Libra Cryptocurrency Scandal

Argentina’s National Congress has initiated a formal investigation into the cryptocurrency $Libra following allegations of large-scale fraud tied to the token. The bipartisan commission, announced this week, is tasked with examining the origins, promotion, and eventual collapse of $Libra, which had been publicly endorsed by President Javier Milei and other members of his administration.

The formation of the committee comes amid mounting pressure from opposition lawmakers and aggrieved investors who claim they were misled into believing $Libra had government backing. The commission is expected to hold its first hearing on April 22, during which key figures in the Milei administration, including Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, Cabinet Chief Nicolás Posse, and the head of the National Securities Commission, will be summoned to testify.

Milei Under Scrutiny

The scandal has become a significant political liability for President Milei, who promoted $Libra as part of his broader campaign to modernize Argentina’s financial system. While initially framed as a pro-innovation move aligning with his libertarian ideology, the token’s subsequent collapse and the emergence of fraud allegations have dealt a blow to his credibility.

According to reports from El País and Buenos Aires Times, investors poured millions of pesos into the cryptocurrency before its value sharply plummeted. There is growing speculation that key officials may have known of the risks associated with $Libra but failed to issue adequate warnings, leading to accusations of negligence or possible complicity.

In response to the outcry, Milei ordered Argentina’s Anti-Corruption Office to launch an internal probe and also created a special investigative unit within the presidency to collaborate with judicial authorities. However, critics argue that these actions are reactive and insufficient given the scale of the financial damage and the administration’s earlier promotion of the coin.

Political Fallout and Public Response

Public confidence in the government’s economic agenda has been shaken. A recent Reuters report indicated a sharp uptick in negative public sentiment toward the Milei administration, with a number of opinion polls showing a decline in the president’s approval ratings. The $Libra debacle has also complicated Milei’s efforts to build political alliances in the lead-up to the 2025 midterm elections.

Opposition leaders have seized on the scandal as a key point of criticism. Some lawmakers have gone so far as to raise the possibility of impeachment, arguing that the president’s direct involvement in promoting $Libra constitutes a breach of public trust.

The investigation is poised to become a defining moment in Argentina’s ongoing political and economic transformation. While the full extent of the alleged fraud is still being assessed, the commission’s work will be closely watched by citizens and markets alike. Its findings could have profound implications for both cryptocurrency regulation and the future of President Milei’s administration.

As the hearings approach, pressure is building for transparency and accountability—not just from lawmakers, but from a public increasingly wary of speculative financial ventures cloaked in official approval.