Javier Milei Cleared in Internal Argentina Libra Crypto Probe

A high-profile investigation into Argentine President Javier Milei concerning his public endorsement of the Libra cryptocurrency token has completed its internal governmental phase, with the anti-corruption office clearing him of any official wrongdoing. This decision by the Argentine anti-corruption agency concludes the executive branch’s internal probe, although a separate federal court case related to the Libra controversy remains active.

President Cleared in Internal Probe

According to Bloomberg, the anti-corruption office determined that President Milei’s promotion of the Libra token on X (formerly Twitter) in February was conducted in a personal capacity. The agency explicitly stated that no federal resources were utilized, and no public ethics laws were violated by his actions. This ruling officially closes the government’s internal inquiry into the matter.

The Genesis of the Controversy

The scandal originated shortly after President Milei met with Libra’s founders, immediately followed by his social media post endorsing the token. This endorsement significantly amplified Libra’s visibility, coinciding with a sharp price surge. However, on the same day, a rapid sell-off occurred from wallets holding substantial amounts of Libra, leading to a dramatic price crash and considerable losses for retail investors. Many observers swiftly accused the government of inadvertently, or deliberately, backing a pump-and-dump scheme, drawing direct links to President Milei and his inner circle. At the time, Milei defended his actions, clarifying, “I wasn’t trying to sell anything. I just wanted to promote a project that helps Argentine businesses.”

Investigation Unit Disbanded

In the wake of the Libra controversy, the Argentine government established a special body, the Investigative Task Force (UTI), specifically to examine the crypto affair. Created by a presidential decree signed by both President Milei and Justice Minister Mariano Cúneo Libarona, the UTI was tasked with investigating any irregularities in Libra’s promotion, identifying beneficiaries, and determining if laws were broken. It also had the authority to request documents and report attempts to conceal evidence.

However, the UTI was dismantled merely three months after its formation. A formal decree, again signed by President Milei and Minister Cúneo Libarona, declared that the unit had “fulfilled the functions assigned to it,” without providing further details or public findings. This abrupt closure of the executive branch’s internal investigation unit intensified public criticism, particularly from crypto investors who had initially believed Libra was an officially sanctioned Argentine crypto project, only to suffer significant losses on a now-worthless token.

Broader Repercussions and Unanswered Questions

Subsequent reports revealed that a concentrated number of wallets controlled the majority of the Libra supply. These specific wallets were reportedly emptied soon after President Milei’s promotional post, a move that triggered the token’s crash and resulted in widespread losses for everyday Argentine citizens. Retail investors subsequently flooded local regulators with complaints, demanding clarity on whether any government officials had prior knowledge of these events or profited from the token’s volatile price movements.

The controversy has also spilled into Argentina’s Congress. In April, lawmakers formed a 28-member special investigative committee to delve deeper into the case. Despite this, formal proceedings have yet to commence. Notably, Justice Minister Mariano Cúneo Libarona and Economy Minister Luis Caputo did not appear for a scheduled summons on May 14, drawing sharp criticism from opposition politicians and investors who accuse the government of evading accountability.