Argentina’s Anti-Corruption Office has officially cleared President Javier Milei of any violation of public ethics laws regarding his February 14 endorsement of the LIBRA memecoin.
The resolution, issued on June 5, concluded that Milei’s support for the token was made in a strictly personal capacity and involved no misuse of government resources.
The agency noted that Milei’s use of the X platform, where he made the endorsement, has been consistently personal and non-institutional since 2015.
Despite the ruling, the decision arrives amid a storm of political backlash following the token’s dramatic collapse and the financial harm suffered by investors.
LIBRA Token’s Market Implosion Raises Public and Political Alarm
The LIBRA memecoin experienced an explosive and short-lived rise after Milei’s public mention, soaring to a $4 billion market capitalization before crashing by 94% within hours.
The rapid boom-and-bust cycle has drawn comparisons to a textbook pump-and-dump scheme.
The fallout triggered widespread criticism, with opposition lawmakers accusing Milei of misleading retail investors and even calling for his impeachment.
Although Milei maintains he merely “spread the word” and did not promote the token, the perception of impropriety has lingered, especially given the devastating losses many investors suffered.
Ongoing Investigations and Accusations of Political Cover-Up
Though the Anti-Corruption Office has cleared Milei of ethical wrongdoing, legal scrutiny continues.
A federal criminal court is actively investigating whether market manipulation occurred in connection with Milei’s comments.
Critics argue the probe has lacked transparency and accuse the government of protecting its own.
Argentine lawmaker Itai Hagman was particularly vocal, asserting via X that authorities are “covering each other up.”
The situation was further complicated when Milei signed a decree on May 19 to dissolve a task force that had been formed to investigate the LIBRA incident.
No charges or penalties have been filed against Milei or other officials thus far, but public trust continues to erode.
Widespread Investor Losses Highlight LIBRA’s Economic Impact
The LIBRA debacle has had devastating consequences for investors. Blockchain analytics firm Nansen reported that over 86% of traders, more than 15,000 wallets with trades exceeding $1,000, incurred losses. The collective realized loss amounted to a staggering $251 million.
Meanwhile, central figures behind the LIBRA launch, including Hayden Davis of Kelsier Ventures and Julian Peh of KIP Protocol, are believed to have profited significantly.
Davis reportedly made around $100 million from the launch, although he claims to hold no direct stake in the tokens.
The stark contrast between executive profits and widespread retail losses has fueled public outrage and intensified calls for regulatory reforms.