Argentina’s cryptocurrency scene is shaking after the spectacular failure of the LIBRA token. The fallout has sparked a major political battle, with accusations flying and investigations underway.
Congress Takes Action
The Chamber of Deputies, Argentina’s lower house of parliament, voted to launch a full-scale investigation into LIBRA. This wasn’t a unanimous decision; the votes were close, highlighting the deep political divisions surrounding the issue. The investigation will involve:
- Creating a special committee: To delve into the details of the LIBRA collapse.
- Summoning government officials: Big names like the Economy Minister, Chief of Staff, Justice Minister, and the head of the National Securities Commission are on the list.
- Demanding documents: Lawmakers want all the information they can get on LIBRA from the government.
Political Fallout
The debate in Congress was heated. Some lawmakers stressed the need for transparency and accountability, arguing that the legislature has a duty to investigate potential wrongdoing and protect Argentinian financial interests. Others, however, argued the investigation overstepped its authority and was a politically motivated attack on the current administration. The debate largely fell along party lines, with supporters of President Milei downplaying the severity of the situation and accusing the opposition of playing politics.
The Man Behind LIBRA: Haydone Davis
The creator of the LIBRA token, Haydone Davis, is facing serious legal trouble. An Argentine lawyer has requested an Interpol Red Notice for Davis, and prosecutors have identified him as the main culprit behind the token’s collapse. The legal action isn’t limited to Argentina; a major US law firm has also filed a lawsuit against Davis and his companies, seeking compensation for affected investors. The international nature of the legal battle underscores the global impact of the LIBRA scandal.
