Political Turmoil Erupts Over $LIBRA Token Collapse
Argentina’s Chamber of Deputies has launched a formal investigation into the collapse of the $LIBRA cryptocurrency, dealing a significant blow to President Javier Milei’s administration. The new commission will examine the controversial events leading to the token’s dramatic rise and fall—an ordeal that has left thousands of investors in financial distress.
On February 14, 2025, President Milei endorsed $LIBRA, promoting it as a private solution to boost Argentina’s economy by supporting small businesses and startups. His backing triggered a sharp spike in the token’s value. But the euphoria was short-lived. $LIBRA’s value crashed soon after, impacting roughly 74,000 investors and sparking accusations of a “rug pull”—a deceptive scheme where developers vanish with investor funds.
Lawmakers Demand Accountability and Transparency
The fallout has fueled intense political backlash. Opposition leaders are now pushing for President Milei’s impeachment, accusing him of ethical violations and possible involvement in fraudulent activity.
The vote to establish the investigative commission passed with 128 in favor and 93 opposed, reflecting deep divisions in Argentina’s political arena. Several high-ranking officials are scheduled to testify before the commission on April 22, including:
- Chief of Cabinet: Guillermo Francos
- Minister of Economy: Luis Caputo
- Minister of Justice: Mariano Cúneo Libarona
- Head of the National Securities Commission: Roberto Silva
Global Legal Repercussions and Investor Fallout
Beyond Argentina’s borders, the $LIBRA scandal has caught international attention. U.S.-based law firms have initiated class-action lawsuits representing foreign investors who were financially hit by the token’s collapse. These cases could escalate the pressure on Milei’s government and further destabilize Argentina’s already fragile financial markets.
The $LIBRA debacle serves as a stark reminder of the risks tied to unregulated digital currencies. It underscores the urgent need for investor due diligence and stronger regulatory frameworks, especially as governments and influencers continue to endorse volatile crypto ventures.
