Argentine lawmakers approve probe into LIBRA memecoin scandal 

The House of Deputies of Argentina approved an official investigation into the Balance Mencoin scandal after the token collapse has wiped out more than $ 280 million of nearly 75,000 traders.

In a special session Held on April 8, the legislators supported three resolutions aimed at discovering the truth behind the launch and the rapid crash of the controversial token. The first resolution establishes a commission of inquiry to probe the scandal of the balance, approved with 128 votes in favor.

The legislators also voted to convene high government officials, in particular the chief of staff Guillermo Francos, the Minister of the Economy Luis Caputo, the Minister of Justice Mariano Cúneo Lebarona, and the head of the National Commission for Securities Roberto Silva, for interrogation.

A third resolution requires detailed reports of the executive branch on the development of the balance and the role of the government in its promotion. The three measures were adopted with strong support despite the resistance of certain members of the Libertad Avanza party.

The opposition called for transparency and responsibility. “Society has the right to know the truth,” said Maximiliano Ferraro, a civic coalition legislator. Others warned against the exaggerated executive and urged respect for the legal processes.

The scandal of the balance took place on February 14 when President Javier Milei promoted the balance on X, calling this a means of “stimulating the Argentinian economy”. The token immediately jumped more than 3,000% before crashing 90% of hours later after Milei abolished the position and said it was ignorant Details of the token. His government then minimized promotion as routine support for entrepreneurship.

Surveys later revealed The fact that the initiates, including Kelier Ventures, could have accessed tokens and to handle liquidity before the launch, which achieves more than $ 110 million in profits. A series of prosecution was filed against key personalities in creating the token.

In one of them, on March 18, Burwick Law laid A collective recourse in New York against Kelers Ventures, the Kip protocol and the meteors, alleging misleading practices, liquidity manipulation and fraud. Documents indicate that the developers have retained 85% of the tokens supply, allowing initiates to drain liquidity at launch while retail investors were misleading with promises of economic renaissance.

The scandal led to a political reaction. Legislators through the opposition blocks argue that the treatment by President Milei of the situation undermines his anti-corruption position. This could harm its credibility before the mid-term elections in Argentina later this year.