Argentina Investigates Milei’s Link to $280M LIBRA Memecoin Scandal

Argentina’s Chamber of Deputies has approved three proposals to launch a special commission to investigate the LIBRA memecoin scandal – an issue that has troubled President Javier Milei’s administration since February. What began as a bold endorsement of a crypto project has now spiraled into a full-blown political controversy.

With millions lost and questions piling up about Milei’s involvement, the case is quickly becoming one of Argentina’s biggest crypto scandals yet. Here’s how it all unfolded.

The LIBRA-Milei Scandal

At first, Libertarian President Javier Milei supported LIBRA, describing it as a private initiative to help Argentina’s economy by supporting small businesses. On February 14, he posted on X:

“The world wants to invest in Argentina. $LIBRA.”

But the post was deleted soon after—right after the coin crashed.

Experts say the LIBRA case appears to be a “rug pull” – a common crypto scam where creators boost a token’s value and then quickly cash out. After Milei’s post, LIBRA’s price surged, only to crash by 90% within two hours. Milei later said he didn’t know the full details of the project.

Congress Approves Investigation: $280 Million Lost

On Tuesday, Argentina’s lower house voted 128–93 (with 7 abstentions) to launch a formal investigation into the LIBRA scandal. Over 75,000 retail investors reportedly lost around $280 million, raising serious concerns about Milei’s possible links to the project and whether his involvement allowed the scheme to happen.

Lawmakers also approved a motion to summon Economy Minister Luis Caputo, Justice Minister Mariano Cuneo Libarona, and other top officials to testify. Meanwhile, a judge has been assigned to investigate Milei’s ties to the project. He now faces allegations of fraud, criminal collusion, and neglect of presidential duties.

Parliament Split Over the Probe

Pablo Juliano, from the Democracia para Siempre bloc, urged Congress to find out if Argentina was harmed and stressed their commitment to uncovering the truth. On the other hand, Nicolás Mayoraz from the ruling La Libertad Avanza party called the investigation an “interference” and said it disrespects the separation of powers.

President’s Ties Questioned

Milei also held meetings with people involved in launching LIBRA, including businessmen from the U.S., Singapore, and Argentina—many of whom are now under investigation in local and international courts. After the crash, LIBRA creator Hayden Davis accused Milei of “betrayal” for deleting his social media posts and claimed he was advising the government.

The LIBRA scandal has raised bigger concerns about political figures getting involved with unregulated digital assets. In a country already facing high inflation and economic instability, this case highlights the serious risks of poorly supervised crypto ventures.