Argentina's opposition parties have officially relaunched an investigation into President Javier Milei's involvement in the $LIBRA cryptocurrency scandal, capitalizing on mounting political vulnerabilities and fresh corruption allegations. On August 28, lawmakers established a special commission, led by opposition legislator Maximiliano Ferraro, to examine claims of insider trading and a pump-and-dump scheme tied to the token promoted by Milei in February 2025.
The scandal erupted when Milei publicly endorsed $LIBRA as an investment opportunity, leading to a rapid price surge followed by a catastrophic crash within hours. Nearly 50,000 investors suffered losses after nine wallets holding the majority of the token's supply cashed out $87 million, leaving others with worthless assets. Despite initial clearance by Argentina's Anti-Corruption Office, prosecutors continued pursuing fraud charges against Milei, while his government dissolved an earlier task force investigating the matter, citing lack of findings—a move that sparked public outrage.
The probe gained renewed momentum following leaked recordings implicating Milei and his sister, Karina Milei, in a separate bribery scheme, triggering protests in Buenos Aires where demonstrators hurled produce and rubbish at the president. The commission, comprising five opposition parties representing 136 of the Chamber of Deputies' 257 lawmakers, has until November 10, 2025, to conclude its investigation, weeks after October's critical elections.
Political instability has exacerbated market anxieties, with Argentine bonds, stocks, and the peso declining as investor confidence wanes. The scandal underscores broader concerns about cronyism and financial mismanagement, threatening Milei's economic reforms and weakening his grip on power ahead of the elections.