David Edwards
Argentine President Javier Milei has officially dissolved a government task force set up to investigate the LIBRA cryptocurrency scandal—a project he controversially promoted on social media before its value plummeted to zero. The decision, enacted through a presidential decree on May 19 and co-signed by Justice Minister Mariano Cúneo Libarona, has sparked political backlash and renewed calls for accountability.
According to official government records, the Investigative Task Unit (ITU) was declared defunct after purportedly “completing its mandate.” The move comes amid growing pressure from opposition lawmakers, who are preparing to establish a new congressional investigative commission as early as May 20, according to local reports.
The LIBRA Pump-and-Dump Allegations
The LIBRA token briefly surged in value after Milei’s endorsement on his official X account in February, reaching $5 per token and hitting a market capitalization close to $5 billion. However, the project rapidly collapsed, with blockchain analysts labeling it a textbook pump-and-dump scheme.
Critics allege potential insider trading and price manipulation, placing Milei at the center of a scandal that has severely eroded public trust. A recent poll indicated that nearly 58% of Argentinians no longer trust the president due to his involvement in the LIBRA debacle.
Milei Denies Wrongdoing
In a televised appearance on Todo Noticias, Milei rejected accusations of misconduct, claiming he merely “shared” the LIBRA project to highlight what he believed could be a financial tool for entrepreneurs. “I saw a tool that could finance entrepreneurs, and I spread the word. I acted in good faith and took a hit,” he stated.
Attempting to minimize the impact, Milei estimated that no more than 5,000 investors were affected—predominantly from China and the United States—and suggested that only “four or five” Argentine citizens suffered financial losses. However, blockchain data contradicts these claims. Over 15,000 wallets engaged in LIBRA trades, with 86% recording losses totaling $251 million, according to independent analysis.
