Argentina’s Anti-Corruption Office Clears President Milei in LIBRA Memecoin Case

Update: LIBRA Memecoin Scandal - President Milei Cleared, Investigation Continues
Argentina’s Anti-Corruption Office Clears President Milei in LIBRA Memecoin Case
Written By:
Kelvin Munene
Published on

Argentine President Javier Milei did not violate any public ethics laws when he promoted the Solana-based memecoin, Libra (LIBRA). This conclusion comes from a resolution issued by Argentina’s Anti-Corruption Office on June 5. The ruling stated that Milei acted in a personal capacity when he endorsed LIBRA in a social media post on February 14, rather than as a public official.

Officials clarified that his X (formerly Twitter) account has been used for both political and personal views even before he became president. The case emerged amid widespread public concern, as LIBRA's value skyrocketed to over $4.5 billion following Milei's post, only to plummet by 94% within hours. This drastic decline resulted in investor losses totaling $251 million. 

Furthermore, opposing leaders questioned Milei of wrongdoing, and some wanted him to be impeached because his promotion allegedly caused a giant pump-and-dump scheme. Nevertheless, the anti-corruption watchdog did not find misuse of public money and stated that Milei was exercising his constitutional rights as a citizen.

Public Response and Ongoing Legal Investigation

Although the investigations have cleared the President, the controversy continues to affect people's opinions. A research firm, Zuban Córdoba, found that Milei’s trust ratings decreased from 47.3% to 41.6% following the LIBRA incident. Critics, such as those from the Argentine Chamber of Deputies, have raised doubts about the investigation's thoroughness and transparency.

In addition to the anti-corruption inquiry, a federal criminal court is conducting a separate investigation into Milei’s involvement in the LIBRA token scandal. The president has denied any wrongdoing and said he only “spread the word” about the project, which claimed to support small and medium-sized Argentine enterprises. On-chain analytics from Nansen revealed that 86% of LIBRA traders lost money during the sell-off, while a smaller group made significant gains.

Wider Fallout and Political Context

The crash of LIBRA raised new concerns about possible financial connections between the token’s creator and close government administration contacts. Text messages surfaced that revealed that the co-creator boasted about payments to Milei’s sister, Karina Milei, a prominent government official. No official action has been taken against Milei or his associates following these revelations.

On May 19, Milei dismissed the group established to investigate the LIBRA incident. According to the Anti-Corruption Office, led by Alejandro Melik, the president’s social media posts displayed his views, without reflecting government policies. In the meantime, the federal court is pursuing its investigation, and the LIBRA memecoin scandal is affecting Milei’s reputation as well as Argentina’s discussions about cryptocurrencies in politics.

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