Argentina's Chamber of Deputies Approves LIBRA Scandal Probe, 128-93

Argentina’s Chamber of Deputies has taken significant steps to investigate the LIBRA cryptocurrency scandal, which has raised concerns about potential connections to President Javier Milei. The Chamber approved the creation of a special committee to delve into the matter, summon government representatives, and demand detailed documentation on the collapsed crypto token. The establishment of this special commission was approved with 128 votes in favor, 93 against, and seven abstentions, highlighting the political tensions surrounding the case.

Lawmakers also authorized a bill to call up senior officials from the executive branch, including Economy Minister Luis Caputo, Chief of Staff Guillermo Francos, Justice Minister Mariano Cúneo Libarona, and National Securities Commission President Roberto Silva. This resolution passed narrowly with 131 votes supporting and 96 opposing. A third resolution requesting detailed information from the Executive Branch about the LIBRA token received 135 votes in favor, 84 against, and 7 abstentions. These measures were taken in response to growing concerns about whether the cryptocurrency’s downfall harmed Argentina’s financial interests.

During the legislative session, members of parliament expressed sharply different views. Pablo Juliano from the Democracy Forever bloc emphasized the need for legislative oversight of the situation. His position stood in stark contrast to Nicolás Mayoraz of President Milei’s La Libertad Avanza party, who warned the commission could overstep judicial authority. Other lawmakers took middle positions. Oscar Agost Carreño of Encuentro Federal and Karina Banfi from the UCR stressed the legislature’s responsibility to demand political accountability. Banfi noted that investigations are already happening at both national and international levels. Maximiliano Ferraro from the Civic Coalition argued for the public’s right to transparency in the matter. Gabriel Bornoroni, the La Libertad Avanza bloc leader, dismissed the opposition’s efforts, claiming they were simply trying to disrupt government progress.

The political debate follows serious legal challenges against LIBRA token creator Haydone Davis. On March 13, Argentine lawyer Gregorio Dalbon asked Interpol to issue a Red Notice for Davis, whose company Kelsier Ventures launched the LIBRA token in February. Argentine prosecutors have identified Davis as the main person responsible for the token’s collapse, which caused widespread financial losses. The scandal has now crossed borders, with Burwick Law, a major cryptocurrency legal firm, filing a lawsuit against Kelsier Ventures and two related platforms: Meteora and KIP Protocol. The legal action seeks to recover profits and provide compensation for affected investors in the United States.

This investigation into the LIBRA cryptocurrency scandal underscores the growing scrutiny and legal challenges faced by those involved in the cryptocurrency industry. The political divide within Argentina’s Chamber of Deputies reflects the broader debate over the role of cryptocurrencies and the need for regulatory oversight. As the investigation continues, it remains to be seen how these developments will impact the future of cryptocurrencies in Argentina and beyond.