Argentina’s President Javier Milei Cleared of Wrongdoing in Libra Crypto Token Scandal
The anti-corruption office in Argentina has officially cleared President Javier Milei of any wrongdoing in relation to his public promotion of the Libra crypto token, according to a report by Bloomberg. The agency stated that Javier did not violate any laws when he posted about Libra on X in February, emphasizing that the post was made in his personal capacity, did not involve federal resources, and did not breach any public ethics codes. While the government’s internal investigation has been concluded with this ruling, a federal court case related to the scandal is still ongoing.
The controversy surrounding Javier Milei began when he shared a message about Libra shortly after meeting the token’s founders. His post quickly increased the visibility of the token, leading to a spike in its price and subsequent dumping of large amounts of the coin from wallets. This sudden market crash resulted in significant losses for retail investors, sparking accusations of a pump-and-dump scheme with alleged government involvement.
In response to the uproar, the Argentine government swiftly established a special task force known as the Investigative Task Force (UTI) to investigate the Libra drama. This unit was mandated to scrutinize the promotion of Libra, identify any beneficiaries of the situation, and determine if any laws were violated. However, after just three months of operation, the UTI was disbanded by a formal decree signed by President Javier Milei and Justice Minister Mariano Cúneo Libarona, stating that the unit had completed its assigned tasks without providing further details.
The closure of the UTI marked the end of the executive branch’s internal inquiry into the Libra scandal. The decision to dismantle the task force came amid growing public discontent, particularly from crypto investors who believed that the token had received official government endorsement. Following Javier Milei’s post, reports emerged revealing that a small number of wallets controlled the majority of the Libra supply, which were emptied shortly after the promotional message, triggering the market crash and resulting in losses for many Argentines.
In response to the outcry from retail investors, local regulators were inundated with complaints, prompting the formation of a special investigative committee within Argentina’s Congress to further examine the case. Despite calls for accountability, both Justice Minister Mariano Cúneo Libarona and Economy Minister Luis Caputo failed to appear before the committee on May 14, drawing criticism from opposition politicians and concerned investors who accused the government of evading responsibility.
As the aftermath of the Libra scandal continues to unfold in Argentina, the closure of the UTI and the ongoing federal court case underscore the complexity and implications of the crypto controversy involving President Javier Milei. Investors and the public alike await further developments and accountability in the aftermath of this tumultuous event.