Argentine Congress Advances Probe into $250 Million $LIBRA Crypto Scam After Three Months of Obstruction

The Argentine Congress is moving to end a three-month period of alleged obstruction in the investigation into the controversial $LIBRA cryptocurrency scandal, a case that has seen President Javier Milei's administration accused of hindering transparency. Opposition figures assert that a new legislative initiative will force accountability regarding the "rug pull" scam that cost investors millions.

The $LIBRA cryptocurrency gained prominence on February 14, 2025, when President Milei publicly promoted it on social media, linking to a project that claimed to support Argentine small businesses. However, the token's value soared and then rapidly collapsed, leading to an estimated $250 million in losses for thousands of investors in what has been widely described as a "rug pull" scheme.

Maxi Ferraro, a prominent opposition figure, stated that legislative action will "put an end to the blockade by the ruling party and its allies on the investigation into what happened with $LIBRA." He accused the government of employing "traps and stratagems" from the outset to prevent scrutiny into political responsibilities and the involvement of President Milei and his closest officials in the "cryptocurrency scam."

Ferraro detailed the alleged obstruction tactics, including claims that the ruling party "manipulated blocs to alter the commission's composition, hindered votes and regulatory interpretations, brought the Chief of Staff without clear answers, and crucially, saw implicated officials absent themselves from summons." These actions have significantly delayed the investigative commission, which was approved in April but struggled to begin formal proceedings due to internal disagreements, including a 14-14 tie in selecting its head.

Parallel legal investigations are also underway, with a federal prosecutor probing President Milei, his sister Karina Milei, and several businessmen. A class-action lawsuit filed in the United States targets Hayden Davis, a key figure who admitted controlling substantial funds from the scheme and is alleged to have close ties to the President's circle. President Milei has consistently denied wrongdoing, stating he "did not promote it, I spread" awareness, and controversially compared investor losses to gambling, remarking, "If you go to a casino and lose money, what’s your claim?"

The ongoing scandal, dubbed "Cryptogate" by local media, has sparked calls for impeachment and raised concerns about public trust and international investor confidence. The opposition views the three months of delays as "an attempt at impunity" by La Libertad Avanza, according to Ferraro, as the Congress now pushes for full clarity on the financial and political ramifications of the $LIBRA incident.