Argentine Anti-Corruption Office Clears Milei in Libra Token Case

In a significant development, the Argentine Anti-Corruption Office (OA) has concluded its ethical investigation into President Javier Milei concerning his public endorsement of the Libra token. According to their findings, no violations were identified, and Milei was exonerated from any wrongdoing.

Personal Initiative vs. Government Stance

The agency clarified that Milei’s post supporting Libra on social media was a personal gesture, not reflecting any governmental policy or position. They emphasized that this post did not involve any administrative acts, allocation of state resources, or institutional backing. Therefore, it should be viewed as an act of individual communication without leading to official decisions in public policy.

The Fallout and “Cryptogate”

Milei’s endorsement of Libra occurred in February 2025 when he expressed support for small businesses through this digital asset. However, after a precipitous drop in the token’s capitalization by 99% from its peak of $4.5 billion, he removed his post. The ensuing scandal dubbed “Cryptogate” by local media drew criticism from opposition parties and led to collective lawsuits from investors.

Ongoing Investigations and Legal Proceedings

Despite the closure of the administrative case by OA due to lack of misuse of administrative resources or budgetary expenses by Milei, a criminal investigation persists. One key figure under investigation is Hayden Davis, associated with Libra and who first met with Milei on January 30, 2025. Davis’ wallets containing $57.6 million USDC were frozen by Circle following a U.S. court order.
Additionally, collective lawsuits filed in Argentina, the United States, and the United Kingdom remain active. Milei’s representatives assert that he has no connection with the developers behind the token and cannot be held accountable for their actions.
President Milei had previously disbanded a task force investigating LIBRA’s collapse.
This unfolding saga underscores critical challenges within cryptocurrency regulation and governance frameworks globally while highlighting potential pitfalls for leaders associating with volatile digital assets without thorough due diligence and risk assessment.