**Argentina’s Congress Takes a Closer Look at Officials Tied to the Libra Token**
Argentina’s Congress is delving into the actions of government officials associated with the Libra token, which faced a dramatic rise and fall earlier this year. The inquiry was sparked by President Javier Milei’s enthusiastic promotion of the token on social media, which unfortunately led to substantial financial losses for many investors. The lower house of Congress has voted in favor of an investigation into possible misconduct, demonstrating a strong commitment to uncovering the facts surrounding the token’s rapid ascent and subsequent decline.
The congressional motion received overwhelming support, with 128 votes in favor, 93 against, and 7 abstentions, as reported by Elecciones Argentina. This investigation will scrutinize key members of Milei’s administration, including the Economy Minister, Justice Minister, Chief of Staff, and the head of the National Securities Commission. Lawmakers plan to summon these officials and request pertinent documents to gauge their involvement in the situation.
The controversy traces back to a post made by President Milei on X in February, where he touted the Libra token as a means to invigorate Argentina’s economy by supporting small businesses and startups. He even included a link to the token’s smart contract. Following this endorsement, the Libra token, which operates on the Solana blockchain, saw its value soar, briefly reaching a market capitalization of over US$4.5 billion. However, this surge was fleeting, as the token’s price plummeted by more than 90% within hours due to allegations of insider trading, resulting in investor losses estimated at up to $250 million.
In response to the fallout, President Milei later removed his post, stating that he was simply sharing information and did not intend to endorse the project. He remarked, “I was not aware of the details of the project, and once I found out, I decided to stop promoting it.” The administration has referred the matter to the Anti-Corruption Office, but critics argue that Milei’s initial promotion was a significant error in judgment. Opposition leaders have dubbed the incident “Cryptogate,” calling for a thorough and transparent investigation. Over 100 criminal complaints have been lodged, alleging fraud, market manipulation, and breaches of public trust.
With Congress now stepping in to investigate, Milei’s government faces increased pressure to clarify the events surrounding the Libra token and their involvement. This situation highlights the potential risks when politicians engage with unregulated digital assets, emphasizing the need for caution and transparency in such matters.
