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On June 8, 2025, Argentina’s Anti-Corruption Office formally absolved President Javier Milei of any misconduct in the contentious $LIBRA cryptocurrency controversy. The case, which erupted in February 2025, saw investors lose $250 million after the $LIBRA token crashed shortly after its launch. The decision marks the end of a high-profile investigation but leaves lingering questions about the role of political figures in the crypto space. Let’s dive into what happened and what this means for Argentina’s crypto future.
The $LIBRA Scandal: A Crypto Crash That Shook Argentina
President Milei initially endorsed the $LIBRA token under Project Viva La Libertad, a blockchain effort to support small businesses in Argentina. On February 14, 2025, his tweet backing the token triggered a sharp rise in its value, but it plummeted within hours, resulting in $250 million in investor losses. The sudden collapse, described as a “rug pull” scam, sparked outrage. Over 112 criminal complaints were filed in Argentina’s Supreme Court within 48 hours, alleging fraud and mismanagement.
The investigation also implicated Milei’s sister, Karina, and Hayden Davis, CEO of Kelsier Ventures, who was linked to prior memecoin scams. Davis claimed to be an adviser to Milei—a claim the Argentine government denied. Critics on X, like @Pacioli23, questioned the investigation’s integrity, pointing out that the Anti-Corruption Office reports directly to Milei, raising concerns of bias. Despite the skepticism, the office concluded that Milei had no direct involvement in $LIBRA’s mismanagement, absolving him of legal responsibility.
Here’s what Dr. Eli David had to say on X about Milei’s initial response:
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What’s Next for Argentina’s Crypto Landscape?
The $LIBRA controversy has greatly undermined trust in Argentina’s cryptocurrency market among investors. With the country already grappling with economic challenges like high inflation, the $250 million loss has fueled public frustration. Many are now calling for stricter crypto regulations to protect investors and prevent similar incidents. Argentina’s Chamber of Deputies launched a separate probe in April 2025, but Milei and Karina were not required to testify, further stoking public skepticism.
Experts argue that this case highlights the risks of public officials endorsing cryptocurrencies, especially in volatile markets like Argentina’s. The event has triggered a wider discussion on the necessity for explicit rules regarding digital asset promotions by government officials. As Argentina continues to explore blockchain technology, the $LIBRA saga serves as a cautionary tale for balancing innovation with investor safety.
Also Read: ALEX Protocol Hacked: $8.3M Stolen in Stacks Blockchain Exploit
This case underscores the challenges of integrating crypto into national projects, especially in a country like Argentina, where economic stability is fragile. The $LIBRA fallout may push for tighter regulations, but it also highlights the need for transparency and accountability in the crypto space. What do you think about Milei’s clearance? Share your thoughts below!
FAQs
What was the $LIBRA cryptocurrency scandal?
The $LIBRA scandal began when President Milei promoted the token in February 2025, leading to a $250 million crash and fraud allegations.
Why was Milei investigated?
Milei faced fraud allegations after endorsing $LIBRA, which collapsed, prompting scrutiny over his involvement in the project.
What did the Anti-Corruption Office find?
The office cleared Milei, finding no direct involvement in $LIBRA’s mismanagement, though others were implicated.
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