Argentina’s Congress Approves Official Inquiry into LIBRA Token Crash

In an April 8 hearing, the Chamber of Deputies of Argentina approved the creation of the Investigative Commission on the Libra token, a move shared by President Javier Milei on X/Twitter.

Launched in February, LIBRA’s price soared after Milei’s post but lost most of its value within hours. According to on-chain analysis, over 75,000 retail investors lost $280 million in LIBRA, raising concerns about insider trading and fraud.

The newly formed commission will seek information from the government regarding the issues surrounding the Libra cryptocurrency and the harm it caused to investors.

Based on the official announcement, various government officials will be involved, including:

• Chief of the Cabinet of Ministers Guillermo Francos, 
• Minister of Economy Luis Caputo, 
• Minister of Justice Mariano Cúneo Libarona.

Martín Menem, President of the Lower House, has until April 15 to sign the resolution for the investigative committee. Party groups must propose committee members by April 11, and the commission is expected to begin its work on April 23.

Overview of the LIBRA Case Investigation

Libra's crash caused public outrage, and following hundreds of complaints, an investigation was launched in Argentina to uncover the reasons behind the token’s dramatic fall.

In March, Federal Prosecutor Eduardo Taiano requested transaction data from foreign crypto platforms involving LIBRA.

On April 1, the US-based Treanor Law Firm, led by Timothy J. Treanor, filed a lawsuit related to the case. Argentine lawyer Gregorio Dalbon commented that Milei’s actions not only caused financial damage but could also constitute criminal offenses, potentially involving international legal cooperation.

At the same time, Argentine prosecutors are seeking an international arrest warrant for Hayden Davis, a key figure behind the LIBRA token launch.

Davis, who was an advisor for the project, denies any wrongdoing in the token’s collapse. In an earlier interview with Coffeezilla, he stated that LIBRA wasn’t a scam but that the launch had gone terribly wrong.

However, Davis also made comments about insider trading being involved in the launch of memecoins, leading to a wave of discussions on social media. He is also linked to the MELANIA token launch, another memecoin that saw a major price drop.

Related: Who Is Hayden Davis? The Man Behind Libra Token Explained