Argentina's Congress has initiated an inquiry into the $LIBRA cryptocurrency, which is linked to President Javier Milei, following a dramatic crash that resulted in over $250 million in investor losses.

Launched on February 14, 2025, the LIBRA memecoin was initially promoted by Milei as a way to support small businesses, achieving a market capitalization of over $2 billion before plummeting more than 90%.

In the wake of the crash, Milei retracted his support for LIBRA, claiming ignorance of the project's details, as calls for his impeachment and fraud charges emerged from opposition members.

Critics have likened the situation to a 'rug pull' scam, alleging that Milei's promotion of LIBRA may have violated laws against elected officials endorsing private ventures.

The inquiry was sanctioned by a vote of 128 in favor, 93 against, and 7 abstentions in the lower house of Congress on April 8, 2025, amidst failed attempts by the government to block the session.

The resolutions propose forming a commission to investigate LIBRA's operations and summon key government officials, including Milei's sister and secretary, Karina Milei.

Key officials expected to testify include presidential spokesperson Manuel Adorni and Economy Minister Luis Caputo, as the inquiry seeks to uncover the extent of the President's involvement.

Deputy Pablo Juliano emphasized the necessity of congressional oversight to assess potential harm to Argentina from the LIBRA token, asserting a commitment to uncovering the truth.

Milei's reputation has suffered significantly due to the controversy, with public trust declining amid accusations of ethical misconduct in his administration's dealings with digital assets.

Hayden Davis, CEO of Kelsier Ventures and a key figure in the LIBRA project, faces legal challenges, including a request for an Interpol Red Notice for alleged financial misconduct.

Critics argue that the crypto market is rigged, as evidenced by LIBRA, where a small group controlled 80% of the tokens, allowing for manipulation and profit-taking.

The scandal surrounding LIBRA is also being investigated in the United States, highlighting the international implications of the controversy.