Key Takeaways:
Argentina’s Anti-Corruption Office ruled that President Milei did not breach ethics laws by endorsing LIBRA. LIBRA’s value plunged 94% after Milei’s post, leading to $251 million in investor losses. A federal court investigation continues as critics question the transparency of the LIBRA probe.Argentina’s Anti-Corruption Office has ruled that President Javier Milei did not violate public ethics laws when he publicly supported the LIBRA memecoin earlier this year.
In a resolution issued on June 5, the agency concluded that Milei’s endorsement of the LIBRA token in a Februart 14 post on X was made in a personal capacity and did not involve the use of government resources.
The ruling comes amid sharp political criticism after the token’s rapid collapse, which reportedly cost investors $251 million.
LIBRA Token Plunges 94% After Milei’s Post Sparks $4B Surge
The controversy erupted after LIBRA briefly soared to a $4 billion market capitalization following Milei’s post, only to lose roughly 94% of its value within hours — a pattern that resembled a classic pump-and-dump scheme.
Opposition lawmakers quickly called for Milei’s impeachment, arguing that the president’s actions had misled retail investors.
In its written decision, the Anti-Corruption Office noted that Milei has maintained a personal presence on X since 2015 and that his posts, even when touching on public matters, are expressed “in a non-institutional manner” and “as a platform for political and personal expression.”
Milei has denied promoting LIBRA, claiming he merely “spread the word” about the token.
However, the fallout has already impacted his approval ratings.
According to a March survey by Zuban Córdoba, national approval for Milei’s administration declined from 47.3% in November to 41.6% following the LIBRA controversy.
Meanwhile, the legal battle is far from over. A federal criminal court continues to investigate the president’s role in the token’s market manipulation.
Critics argue that the probe has lacked transparency and independence.
“It was always a fake, they never dared to investigate anything at all, and they’re covering each other up because they’re completely up to their necks in it,” Argentine lawmaker Itai Hagman posted on X on May 20.
Further adding to the controversy, Milei signed a decree on May 19 to dissolve a task force originally formed to investigate the LIBRA case.
No penalties have been imposed on Milei or any other official connected to the incident so far.
Over 86% of Libra Meme Coin Traders Sold at a Loss
As reported, on-chain analysis has revealed that the majority of Libra meme coin investors suffered significant losses in what appears to be a classic pump-and-dump scheme.
According to blockchain analytics firm Nansen, over 86% of traders, amounting to 15,430 wallets that traded with gains or losses exceeding $1,000, sold at a loss.
The combined realized losses reached a staggering $251 million.
Central figures behind the LIBRA token launch include Hayden Davis, CEO of Kelsier Ventures, and Julian Peh, CEO of KIP Protocol.
Davis and Kelsier Ventures reportedly profited approximately $100 million from the token’s launch, though Davis insists he does not directly hold the tokens and has no plans to sell them.
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