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Argentina’s Presidential Exoneration Amid Cryptocurrency Controversy
Recent developments in Argentina have cleared President Javier Milei of any wrongdoing in the LIBRA memecoin controversy, a scandal that previously led to substantial financial losses for numerous investors. According to local media reports, the country’s Anti-Corruption Office found no legal infractions related to Milei’s endorsement of the cryptocurrency earlier this year.
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Legal Investigation Outcomes
In an official resolution released last Friday, the Anti-Corruption Office clarified that President Milei endorsed LIBRA in his capacity as an economist rather than as a public figure. The endorsement, made on the social media platform X (formerly Twitter) in February, was from a personal account established long before his presidency and was not affiliated with any governmental actions concerning the cryptocurrency.
The office, under the leadership of Alejandro Melik, who assumed the role following Milei’s administration’s appointment in December 2023, confirmed that no state procedures or agreements associated with the LIBRA memecoin existed. Notably, the investigation was initiated following Milei’s own request for scrutiny.
Despite Milei’s exoneration, the case is still under judicial review in Argentina, the United States, and Spain. In April, an initiative by Argentina’s lower house to form a commission to investigate the scandal was blocked by the ruling party, hindering further inquiry.
The LIBRA Memecoin Scandal Unveiled
The LIBRA memecoin scandal erupted on February 14 when President Milei promoted the cryptocurrency, asserting its potential to bolster Argentina’s economy by aiding small businesses. This announcement included a “contract number,” enabling potential investors to find the token, which was notably absent from major exchanges. Initially, LIBRA’s value soared to over $5 but rapidly collapsed to near worthlessness, inflicting significant losses on thousands of investors.
Milei’s association with Hayden Davis, the creator of the LIBRA memecoin, has come under close examination. Reports suggest that Milei met with Davis several times before the token’s release, facilitated by Argentine entrepreneurs Mauricio Novelli and Manuel Terrones Godoy. These interactions have raised suspicions, particularly after Sergio Morales, a former advisor to Argentina’s National Securities Commission (CNV), stepped down amid prosecutorial investigations regarding his potential involvement in the scandal.
The Anti-Corruption Office’s resolution made several references to U.S. Supreme Court cases and explored the complexities of differentiating between personal and institutional obligations. The findings concluded that while Milei occasionally mentioned public policies on his personal account, these references were made in a non-official capacity, given that the account existed before his governmental role.
Currently, the daily chart illustrates LIBRA’s price stabilization after its dramatic decline. As of the latest data, the memecoin is valued at $0.030, reflecting a drop exceeding 96% from its peak on February 14. However, over a monthly span, the token has shown a 37% increase.
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