Quick Takeaways
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Argentina’s Chamber of Deputies approved a special committee to investigate the Libra meme coin scandal involving President Javier Milei, with 128 votes for and 93 against.
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The committee can summon high-ranking officials like Economy Minister Luis Caputo, but faces criticism for not including President Milei or his sister Karina in the inquiry.
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The investigation stems from accusations that Milei promoted the LIBRA token, which skyrocketed to $5 before plummeting over 94%, raising suspicions of fraud and a potential pump-and-dump scheme.
- A report revealed that 86% of LIBRA buyers lost around $251 million, while evidence linked the creators to past pump-and-dump operations, despite deflections from LIBRA’s creator, Hayden Davis.
Special Committee to Probe President Milei’s Role in Libra Meme Coin Scandal
Argentina’s Chamber of Deputies has taken significant action by forming a special congressional committee. Lawmakers voted 128 in favor, with 93 against and seven abstentions. This committee will investigate the controversial Libra (LIBRA) meme coin scandal linked to President Javier Milei.
The committee’s mandate allows it to summon key government officials and request documents from public institutions. Notable figures like Economy Minister Luis Caputo and Justice Minister Mariano Cúneo Libarona are expected to testify. However, some lawmakers criticize the omission of President Milei and his sister Karina from this inquiry. Lawmaker Sabrina Selva has emphasized the need for both to clarify their roles in the LIBRA incident.
Accusations against Milei suggest he leveraged his influence to promote the LIBRA meme coin. The token had a meteoric rise, reaching a value of $5 and a market cap of $4 billion after Milei tweeted about it. Yet, it plummeted by over 94% when he deleted the post, raising concerns over a potential pump-and-dump scheme.
Lawyers Marcos Zelaya and Jonatan Baldiviezo submitted a criminal complaint on February 17, alleging fraud against Milei. Critics further claim the project resembled a "rug-pull" scam. They argue Milei misled investors, capitalizing on his large social media following of 3.8 million.
An investigation by on-chain analytics platform Nansen highlighted that 86% of LIBRA traders lost an estimated $251 million. Conversely, a few investors reported profits exceeding $180 million. Moreover, a report from blockchain analysis firm Bubblemaps linked LIBRA’s creators to prior pump-and-dump schemes and uncovered evidence of profits diverted through various wallets, including connections to the creators of MELANIA tokens.
Despite the scrutiny, LIBRA creator Hayden Davis defended the project. He claimed critics simply missed out on a lucrative opportunity and stressed the unique dynamics of meme coins.
As this committee investigates, developments in the cryptocurrency space may see increased regulation and oversight. This could also establish standards for transparency in new digital currencies, enhancing trust and stability in emerging technologies.
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