David Edwards
Javier Milei, the president of Argentina, has been exonerated of any wrongdoing in connection with his advocacy of the LIBRA memecoin, which caused a major market meltdown and losses for investors. On June 5, the nation’s Anti-Corruption Office declared that Milei’s endorsement of the cryptocurrency on the social media site X on February 14 was an act in his personal capacity.
The agency concluded that Milei did not breach Argentina’s federal ethical laws for public officials and that no public resources were used. The official decision states that Milei’s engagement on X, where he has been engaged since 2015, is a platform for political and personal expression rather than institutional communication.
The decision is significant because Milei’s first post helped LIBRA’s market valuation spike above $4 billion for a short time before dropping 94% in a matter of hours. The fall, which had the characteristics of a cryptocurrency pump-and-dump operation, cost investors over $251 million in losses. Citing these results, opposition leaders have demanded Milei’s impeachment.
A federal criminal court is still conducting its own independent inquiry into the incident, while the Anti-Corruption Office stressed Milei’s fundamental rights to political and civil expression.
Milei signed a directive on May 19 disbanding the task group set up to investigate the LIBRA scandal, further compounding the political ramifications. Critics contend that a comprehensive investigation was never conducted, despite the fact that no action was taken against Milei or other officials. Itai Hagman, a politician and economist, said the investigation was not sincere and accused authorities of shielding each other.
Even though the watchdog exonerated Milei, her reputation has suffered. According to a March Zuban Córdoba poll, national approval ratings among 1,600 respondents fell from 47.3% in November to 41.6% in March, indicating a drop in trust in Milei’s leadership after the LIBRA incident.
The LIBRA scandal highlights the increasingly intricate relationship between cryptocurrencies, political power, and public accountability in Argentina, even if Milei insists he only disseminated information about the memecoin rather than endorsing it.
