Key Takeaways:
Argentina’s Anti-Corruption Office has determined that President Javier Milei did not infringe upon ethics laws by endorsing the LIBRA memecoin.
The value of LIBRA plummeted by 94% following Milei’s endorsement, resulting in losses estimated at $251 million for investors.
Meanwhile, a federal court investigation is ongoing, with critics raising concerns over the transparency of the LIBRA inquiry.
In a resolution released on June 5, the Anti-Corruption Office stated that Milei’s support for the LIBRA token, expressed in a post on X (formerly Twitter) on February 14, was done in a personal capacity and did not utilize any government resources.
This ruling comes in the wake of significant political backlash following the token’s rapid decline, with reports indicating a staggering loss of $251 million for investors.
LIBRA Token Dips 94% after Initial Surge Following Milei’s Post
The situation escalated when LIBRA’s market capitalization briefly soared to $4 billion after Milei’s tweet, only to drop approximately 94% within a matter of hours, resembling a classic pump-and-dump scenario.
In response, opposition lawmakers have called for Miles’ impeachment, contending that his actions misled retail investors.
The Anti-Corruption Office’s ruling noted that Milei has consistently maintained a personal online presence on X since 2015, and his posts—even those addressing public matters—are articulated “in a non-institutional manner” and function primarily as “a platform for political and personal expression.”
Milei has maintained that he did not actively promote LIBRA, stating he merely aimed to “spread the word” about the token.
The aftermath appears to have adversely affected his approval ratings.
It all began with this post at 5:01 PM ET from Javier Milei.
As seen during President Trump's memecoin launch, the first hour was full of speculation:
Was this a hack or a real launch?
It turned out to be real as multiple other Argentinian politicians posted the news. pic.twitter.com/cL0ZQgxtCB
— The Kobeissi Letter (@KobeissiLetter) February 15, 2025
A survey conducted by Zuban Córdoba in March indicated a decline in national approval ratings for Milei’s government from 47.3% in November to 41.6% after the LIBRA controversy emerged.
Additionally, the legal process remains unresolved, with a federal criminal court continuing to investigate the president’s involvement in market manipulation related to the token.
Critics contend that the investigation has struggled with transparency and independence.
“It was always a fake; they never dared to investigate anything at all, and they’re covering for each other because they’re completely involved in it,” Argentine lawmaker Itai Hagman commented on X on May 20.
Ahora por decreto disolvieron la Unidad de Tareas de Investigación dedicada al escándalo de Libra. Otro principio de revelación más: siempre fue un fake, nunca se animaron a investigar absolutamente nada, y se cubren entre ellos porque están completamente hasta las manos. pic.twitter.com/yQONDdZUgJ
— Itai Hagman (@ItaiHagman) May 20, 2025
Further complicating matters, Milei signed a decree on May 19 to disband a task force that was established to investigate the LIBRA case.
No penalties have been imposed on Milei or any other officials linked to the incident at this point.
Majority of LIBRA Traders Experience Losses
On-chain analysis indicates that many LIBRA investors faced substantial losses, supporting the theory of a classic pump-and-dump scheme.
According to blockchain analytics firm Nansen, over 86% of traders—accounting for 15,430 wallets that engaged in transactions exceeding $1,000—ended up selling at a loss.
The total losses amounted to an astonishing $251 million.
Key figures involved in the LIBRA token launch include Hayden Davis, CEO of Kelsier Ventures, and Julian Peh, CEO of KIP Protocol.
Reports suggest that Davis and Kelsier Ventures garnered profits nearing $100 million from the token’s launch, although Davis asserts he does not hold the tokens and has no plans to liquidate them.
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