Argentina’s Chamber of Deputies voted to approve the formation of a particular congressional committee to analyze the controversial Libra (LIBRA) meme coin scandal, which has tied President Javier Milei to the undertaking.
The vote noticed 128 in favor, 93 in opposition to, and 7 abstentions.
Libra Meme Coin Scandal
In keeping with the report, the committee may have the authority to summon high authorities officers and demand documentation from public establishments. Key figures anticipated to testify embody Financial system Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and Chief of Workers Guillermo Francos.
Nonetheless, there was criticism concerning the exclusion of President Milei and his sister Karina from the inquiry. Lawmaker Sabrina Selva, specifically, argued that each must be compelled to make clear their involvement within the LIBRA incident.
The investigation follows accusations that Milei used his affect to advertise the LIBRA meme coin. The token had surged in worth to $5 and even briefly reached a market capitalization of $4 billion after President Milei shared particulars concerning the token on X.
The worth, nevertheless, collapsed by over 94% as soon as he deleted the publish, which sparked suspicions of a pump-and-dump scheme.
In response, legal professionals Marcos Zelaya and Jonatan Baldiviezo, joined by engineer María Eva Koutsovitis and economist Claudio Lozano, filed a proper felony criticism on February 17, whereby the people accused Milei of fraud for his function in selling the cryptocurrency. A number of critics have additionally alleged that the undertaking was a “rug-pull” rip-off, and Milei was accused of deceptive buyers by utilizing his appreciable social media following of three.8 million.
Findings Associated to LIBRA
On-chain analytics platform Nansen’s report discovered that 86% of merchants who bought the meme coin misplaced an estimated $251 million. Solely a handful of lucky buyers walked away with earnings of greater than $180 million.
Subsequent investigation by blockchain analytics agency Bubblemaps linked LIBRA’s creators to earlier pump-and-dump operations and even confirmed proof of earnings funneled via varied wallets, together with one linked to MELANIA token creators. Regardless of this, LIBRA creator Hayden Davis dismissed criticism, claimed that these upset missed out on alternatives, and defended meme coin dynamics.
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