Argentina Launches Probe into Cryptocurrency Activities Linked to LIBRA Head Milei
Crypto Controversy Deepens: President Milei Under Heavy Fire Following $LIBRA Scandal
The heat is on for Argentine President Javier Milei as investigations roll out following a cryptocurrency scandal involving his name and a memecoin called LIBRA. After a social media endorsement from the President, LIBRA's value skyrocketed, only to collapse hours later, wiping out over $280 million in investor funds and affecting over 75,000 retail participants.
The incident has raised suspicions of a rug pull, a cryptocurrency scam where creators artificially inflate the token's value through endorsements or marketing, then abandon it, leaving investors with worthless holdings.
In the midst of this chaos, the Argentine Chamber of Deputies, the country's lower legislative house, has taken action.
The first resolution called for the formation of an investigative commission, attracting 128 votes in favor, 93 opposed, and seven abstentions.
The second resolution sought to question senior members of the executive branch, including Chief of Staff Guillermo Francos, Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and National Securities Commission (CNV) head Roberto Silva. This resolution received 131 votes in favor and 96 against.
The third resolution demanded detailed reports from the national government on LIBRA and related activities, receiving the backing of 135 lawmakers.
With all three resolutions approved, the Chamber of Deputies will now move forward with a thorough investigation, aiming to uncover any government involvement or prior knowledge of the token's launch and collapse, and whether investors were misled.
The scandal has rocked Argentina, with opposition lawmaker Leandro Santoro calling for Milei's impeachment over the LIBRA memecoin scandal. Meanwhile, Argentine authorities are seeking the arrest of Hayden Davis for alleged pump-and-dump schemes tied to LIBRA and MELANIA tokens.
In the US, Burwick Law has filed a class action against La Libertad Avanza for misleading tactics that allegedly hurt retail investors. The controversy centers on conflicting accounts of presidential involvement in what industry experts describe as a "rug pull" scheme, with investigators examining $4.5 billion in cryptocurrency transactions.
The Argentine President Javier Milei faces scrutiny over a memecoin scandal involving LIBRA, as investigations are underway following accusations of a rug pull. The Chamber of Deputies, the country's lower legislative house, has taken action, with three resolutions being approved to look into government involvement, prior knowledge of the token's launch and collapse, and possible misleading of investors. In the US, a class action suit has been filed against La Libertad Avanza for allegedly misleading tactics related to LIBRA and MELANIA tokens. The controversy surrounds conflicting accounts of presidential involvement, with technology, politics, finance, general-news, and an Argentine lawmaker calling for impeachment.
