- Argentina’s Anti-Corruption Office cleared President Milei of ethics violations over his Libra crypto endorsement, deeming it a personal act with no legal breach.
- Libra surged past US$2B in market cap following Milei’s support but crashed over 99 %, triggering up to US$250M in investor losses and allegations of a pump-and-dump scheme.
- A federal criminal investigation into possible securities fraud and market manipulation remains active, with class actions underway in Argentina, the US, and the UK.
Argentina’s Anti-Corruption Office (OA) has cleared President Javier Milei of wrongdoing in connection to his promotion of the Libra ($LIBRA) cryptocurrency, ruling that his actions were personal and did not breach public ethics laws.
The investigation was launched after Milei publicly endorsed the token from his personal X account in February, calling it a tool to support small businesses and startups.
Related: Strategy Becomes Standard: Spanish Coffee Chain to Invest Billions in Bitcoin
That endorsement helped drive Libra’s market cap above US$2B (AU$3.8B), before it collapsed by over 90%, and triggered a cascade of investor losses, political outrage, and what local media quickly dubbed “Cryptogate”. The token still has around US$7M (AU$10.7M) in market cap, which is… a 99.1% decline.
Milei in Hot Water
Libra’s collapse drew international attention. Over 70% of the token’s supply was held by the founders, who quickly liquidated their positions at the top. The resulting collapse wiped out as much as 85% of Libra’s value within hours, triggering losses of up to US$250M (AU$385M).
The fallout sparked lawsuits, investor outrage, and allegations of pump-and-dump tactics involving public office. But Milei denied any misconduct as well, stating that his post reflected personal views following a meeting with the project’s founders, and argued that his intention was to spotlight blockchain’s role in economic growth, not to encourage speculative buying.
Ironically, two wallets tied to Hayden Davis, one of the project’s core figures, were recently frozen by Circle under a court order from the US District Court in the Southern District of New York. The wallets held a combined US$57.6M (AU$86.5M) in USDC.
But the legal battle is not over. This was just a probe from the OA. A federal criminal court is continuing to investigate possible violations related to securities fraud and market manipulation, charges that fall outside the scope of administrative ethics enforcement.
Unlike the OA, the criminal courts operate independently and could reach a very different outcome. As reported by El País, there are class action suits with plaintiffs from the country, and the US and the UK ready to take on Milei.
Related: Ripple CEO Denies Reported US$4–$5B Circle Acquisition Amid IPO Plans
Credit: Source link
