Argentina’s Congress has summoned Charles Hoskinson, the founder of Cardano, to testify in an investigation into the LIBRA cryptocurrency scandal, which centers on allegations of fraud and market manipulation tied to President Javier Milei’s promotion of the token.
The scandal erupted after LIBRA’s value surged dramatically following Milei’s social media endorsement on February 14, 2025, only to crash by 85% within hours, resulting in approximately $250 million in losses for nearly 75,000 investors. The congressional committee, led by opposition lawmaker Maximiliano Ferraro, is probing Milei’s involvement and has cited 19 individuals, including Hoskinson, for their knowledge of the matter.
Hoskinson’s inclusion stems from his public criticism of the LIBRA project and his participation in the Argentina Tech Forum in October 2023, where the token was discussed.
He alleged that organizers, possibly including Mauricio Novelli and Manuel Terrones Godoy, promised a meeting with Milei that never materialized, instead offering only a handshake and a photo. Hoskinson also claimed he was approached with bribery requests to secure access to the president, which he discussed in a livestream following the token’s collapse.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
Despite his skepticism about the investigation’s political motivations, Hoskinson has expressed support for Milei, stating, “President Milei has been a force for good for the people of Argentina, and I believe that his accomplishments and record stand for themselves.”
The investigation, approved by Argentina’s Chamber of Deputies on April 8, 2025, with 128 votes in favor, also involves summoning high-ranking officials like Economy Minister Luis Caputo and Chief of Staff Guillermo Francos. While Milei has been formally summoned to provide written testimony, Hoskinson and others await a citation schedule expected to be released soon.
The probe is not criminal, but failure to respond could lead to further actions, such as law enforcement assistance, though all cited individuals are entitled to due process. The LIBRA scandal, dubbed “Cryptogate,” has sparked significant political and legal fallout, with allegations of a “rug pull” scam linked to Kelsier Ventures and its CEO, Hayden Davis, who is also under scrutiny in U.S. courts.
The controversy has raised questions about Argentina’s crypto regulation and Milei’s administration, with opposition lawmakers aiming to undermine his credibility ahead of the 2025 midterm elections. Hoskinson’s testimony is seen as critical due to his insider perspective on Argentina’s crypto sector and his vocal stance on the LIBRA launch.
The LIBRA scandal, with President Javier Milei’s alleged endorsement at its core, threatens his administration’s credibility. The investigation, led by opposition lawmakers, could be leveraged to weaken Milei’s libertarian agenda ahead of the 2025 midterm elections.
If Hoskinson’s testimony implicates government officials or reveals improprieties, it could escalate political pressure on Milei, potentially undermining his economic reforms and public support, especially among his crypto-friendly base.
Argentina has been a hub for cryptocurrency adoption due to its history of economic instability and currency devaluation. The LIBRA collapse, with $250 million in losses for 75,000 investors, risks eroding public trust in digital assets.
Hoskinson’s testimony could shed light on systemic issues, such as inadequate regulation or fraudulent practices in Argentina’s crypto sector, potentially prompting stricter oversight. This might stifle innovation but could also push for clearer frameworks to protect investors.
As Cardano’s founder, Hoskinson’s involvement in the investigation could affect the blockchain’s perception, particularly in Latin America, a key growth region. His public criticism of LIBRA and allegations of bribery attempts may bolster his image as a principled figure, but any negative revelations during testimony could harm Cardano’s market position.
Conversely, his insights could reinforce his influence in shaping global crypto policy discussions. The LIBRA scandal highlights the risks of celebrity or political endorsements in volatile crypto markets, potentially prompting regulators worldwide to scrutinize similar cases.
Hoskinson’s testimony could expose broader issues like market manipulation or “rug pull” schemes, influencing investor sentiment and tightening regulations in other jurisdictions. This could impact the valuation and adoption of other cryptocurrencies, including Cardano.
The investigation’s outcome could set a precedent for how governments handle crypto-related fraud. If Hoskinson’s testimony reveals connections between LIBRA’s promoters and political figures, it might lead to legal actions against entities like Kelsier Ventures or its CEO, Hayden Davis, already under U.S. scrutiny.
Milei’s pro-crypto stance was part of his broader economic liberalization plan. The scandal could undermine his narrative of fostering innovation, especially if Hoskinson’s testimony suggests government complicity or negligence. This might force Milei to pivot toward stricter crypto policies, potentially alienating his libertarian supporters while failing to appease opposition critics.
Hoskinson’s testimony could significantly influence Argentina’s political landscape, its crypto regulatory framework, and global perceptions of cryptocurrency reliability. The outcome may either catalyze reforms to protect investors or deepen skepticism about crypto’s role in emerging economies, with ripple effects for Cardano and the broader blockchain industry.