- The Argentine Congress has formally approved a motion to investigate alleged irregularities involving President Javier Milei’s ties to cryptocurrency related activities.
- Legislators want to probe whether Milei or his colleagues engaged in inappropriate use of state assets, fiscal impropriety, or unauthorized promotion of crypto ploys that could have caused loss to investors or breached national laws.
- The inquiry could have far reaching consequences for Milei’s administration, potentially undermining investor confidence, affecting crypto regulation in Argentina, and intensifying political opposition amid an already fragile economic climate.
Enquiry by the Argentine Parliament
Argentine parliament on Tuesday supported the establishment of a commission of inquiry into a cryptocurrency endorsed by President Javier Milei that skyrocketed then collapsed, costing investors hundreds of millions of dollars.
The libertarian president celebrated the $LIBRA meme coin as a “private project” designed to “stimulate the development of the Argentine economy, by funding small businesses and Argentine entrepreneurs.”
“The world is willing to invest in Argentine. $LIBRA,” he posted on the social media platform X on Feb. 14, in a message he removed a few hours later after the currency collapsed.
Experts in the industry described the operation as “rug pull” a fraud in which developers release a crypto token, lure investors, and then rapidly cash out.
$LIBRA was from boom to bust in the course of a day.
Following Milei’s seeming thumbs up, it rose in value but then dropped 90 percent in two hours.
Milei subsequently asserted he “did not know the details of the project.”
On Tuesday, the lower house voted 128 members for and 93 against with seven abstentions to open an investigation into the currency, which traded over $4.5 billion and led investors to lose about $250 million.
MPs also agreed to call on Economy Minister Luis Caputo and Justice Minister Mariano Cuneo Libarona, as well as other high ranking officials, to give evidence over the scandal.
A judge has been ordered to inquire into Milei’s involvement with $LIBRA after accusations he was involved in fraud, was in league with criminals or breached his responsibilities.
Does this Inquiry Gives Solution?
As the inquiry progresses, the political repercussions could present a significant challenge to President Milei’s leadership and stability in office. The investigation centered around alleged misconduct involving cryptocurrency has the potential to erode trust not only in Milei’s administration but also in his broader political platform. If incriminating evidence or ethical lapses are uncovered, opposition parties may seize the opportunity to strengthen their position, leading to a realignment of power dynamics within Congress.
This shift could result in weakened legislative support for Milei’s policy agenda, increased gridlock, and the potential loss of key allies who may distance themselves to preserve their own political standing. Furthermore, the scandal may shape public perception heading into future elections, as voters reevaluate their confidence in Milei’s leadership and his handling of financial and technological innovation. In a country already struggling with economic turmoil, this kind of scandal could widen popular dissatisfaction and be a determining factor in the politics of Argentina.
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