Argentina is facing a major political and financial scandal involving the **$LIBRA cryptocurrency**, which has led to widespread investor losses and government scrutiny.
The controversy centers around President **Javier Milei’s** promotion of the token, which saw a dramatic price surge before crashing, wiping out an estimated **$250 million** in investor funds.
The Rise and Fall of $LIBRA
Initially marketed as a revolutionary digital asset, $LIBRA gained traction after high-profile endorsements, including Milei’s public support.
The token’s value skyrocketed, attracting thousands of investors eager to capitalize on its rapid growth. However, within weeks, the price collapsed, leaving many with significant financial losses.
Government Investigation and Political Fallout
Argentina’s **Lower House** has launched an **investigative commission** to examine the circumstances surrounding $LIBRA’s promotion and subsequent crash.
The commission will question key officials, including **Cabinet Chief Guillermo Francos, Economy Minister Luis Toto Caputo, and Justice Minister Mariano Cúneo Libarona**, to determine whether fraudulent activities or misconduct played a role in the scandal.
Despite mounting pressure, President Milei and his sister, **Karina Milei**, have been spared from direct questioning due to a lack of parliamentary consensus.
Opposition parties have pushed for greater transparency, arguing that the government must be held accountable for its involvement in the cryptocurrency’s promotion.
Impact on Argentina’s Financial Sector
The scandal has shaken investor confidence in Argentina’s cryptocurrency market, raising concerns about regulatory oversight and the risks associated with speculative digital assets.
Analysts warn that the fallout could lead to stricter regulations and increased scrutiny of crypto-related investments in the country.
What’s Next?
The investigative commission is set to begin its work, with findings expected to shape future policies on cryptocurrency regulation in Argentina.
Meanwhile, affected investors continue to demand accountability, hoping for legal action against those responsible for the financial losses.