Chamber of Deputies Advances Resolutions to Probe Libra Memecoin Incident

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Argentina’s Chamber of Deputies has voted to advance three draft resolutions that aim to investigate government officials linked to the Libra memecoin scandal. This controversy became widely known due to President Javier Milei’s involvement earlier this year.

The resolutions include creating a special commission to probe the Libra memecoin, calling on key Executive Power officials for questioning, and requesting a report from the government about the project.

The proposed investigation targets several high-ranking officials, including the chief of staff, minister of economy, minister of justice, and the head of the National Securities Commission (CNV).

Pablo Juliano, a member of the Democracia para Siempre block, emphasized the need for transparency: “It is time for congress to audit whether there is harm to Argentina; we have a commitment to the truth,” Juliano said in a statement.

However, not all are in agreement with the investigation. Nicolás Mayoraz, a representative from the La Libertad Avanza party, criticized the investigation as an “interference” and stressed that it should respect the separation of powers.

Background on the Libra Memecoin Controversy

The Libra memecoin, launched on February 14 by Kelsier Ventures, a Delaware-based company, was initially promoted by President Milei. Shortly after its launch, Milei posted on X (formerly Twitter), endorsing the Libra cryptocurrency. He suggested that it would fund small businesses and startups to help Argentina’s economy. This post also included a link to the token’s website and its contract address on the Solana blockchain.

Following the endorsement, Libra saw a significant surge in value, reaching a fully diluted market cap exceeding $2 billion. However, this rise was short-lived, as the token’s value crashed by over 90%.

Milei’s Response and Backlash

Once Libra’s value plummeted, President Milei retracted his support for the project, stating that he had no prior knowledge of the token’s creation. His actions led to calls for impeachment from opposition members of his political party, while Argentinian lawyers filed charges against him for fraud.

On February 16, Hayden Davis, CEO of Kelsier Ventures, admitted to being an advisor to Milei on the Libra project. Davis further revealed that he had worked closely with Milei’s team. He also explained that the Libra team had used a strategy known as “sniping” at launch, where they purchased tokens at their lowest price to sell them at a higher price once the value increased.

Links to Other Memecoin Projects

Davis also disclosed his involvement in another memecoin project, MELANIA, launched by U.S. First Lady Melania Trump. Like Libra, MELANIA’s value surged before crashing within a brief period. Despite the controversies surrounding his actions, Davis remained involved in the launch of yet another memecoin that similarly experienced a significant decline in value.

In response to these events, an Argentine prosecutor requested that Interpol issue a Red Notice for Davis.