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LIBRA Scandal Resolution: Javier Milei’s Conduct Deemed Ethical By Anti-Corruption Office

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Argentina’s President Javier Milei has been exonerated by the country’s Anti-Corruption Office regarding his involvement in the controversial LIBRA memecoin scandal, which resulted in significant financial losses for investors. 

The announcement, made by local media, indicates that the office found no legal violations in Milei’s promotion of the cryptocurrency earlier this year.

No Legal Breach Found

In a resolution released on Friday, the Anti-Corruption Office stated that Milei acted in his capacity as an economist rather than a public official when he endorsed the LIBRA cryptocurrency on social media platform X (previously Twitter) in February. 

According to the resolution, Milei’s personal account was established long before his presidency and was not linked to any official state actions related to the cryptocurrency.

The office, led by Alejandro Melik, who was appointed by Milei’s administration in December 2023, emphasized that no state procedures or contracts involving the LIBRA memecoin were identified. Notably, the Anti-Corruption Office initiated its investigation at Milei’s own request.

While the ruling clears Milei of wrongdoing, the case remains under investigation by courts in Argentina, the US, and Spain. In April, Argentina’s lower house voted to form a commission to probe the scandal, but the ruling party has stymied efforts to advance the investigation.

LIBRA Scandal Investigated

The LIBRA scandal erupted on February 14, when President Milei publicly endorsed the cryptocurrency, claiming it would strengthen the Argentine economy by supporting small businesses. 

His announcement included a “contract number” that allowed potential investors to locate the token, which was not listed on major exchanges. Initially, the value of LIBRA surged to over $5 but plummeted to nearly worthless within hours, leading to massive losses for thousands of investors.

Milei’s collaboration with Hayden Davis, the creator of the LIBRA memecoin, has drawn scrutiny. Reports indicate that Milei met with Davis multiple times prior to the token’s launch, facilitated by Argentine businessmen Mauricio Novelli and Manuel Terrones Godoy. 

These meetings raised concerns, particularly after Sergio Morales, a former advisor to Argentina’s National Securities Commission (CNV), resigned amid a prosecutor’s investigation into his possible involvement in the scandal.

The resolution from the Anti-Corruption Office includes numerous references to US Supreme Court cases and discusses the complexities of distinguishing between personal and institutional responsibilities. 

It concluded that while Milei occasionally referenced public policies on his personal account, he did so in a non-official capacity, as the account predates his governmental responsibilities.

The daily chart shows LIBRA’s price consolidation after its massive drop. Source: LIBRAUSDT on TradingView.com

As of now, the memecoin trades at $0.030, down over 96% from its all-time high reached on February 14. However, over the monthly time frame, the token has registered gains of 37%. 

Featured image from BBC, chart from TradingView.com 

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No foul play in Javier Milei’s Libra crypto promo, says anti-corruption office
GameFi Guides

No foul play in Javier Milei’s Libra crypto promo, says anti-corruption office

by admin



Argentina’s federal anti-corruption authority has cleared President Javier Milei of any wrongdoing for his February support of the cryptocurrency token Libra.

The office mentioned that his social media endorsement was made in a personal capacity without using federal resources.

The anti-corruption office, operating under a government ministry, concluded that Milei’s X post promoting the token did not violate federal ethics laws governing public officials. However, a separate federal criminal court investigation into the matter remains ongoing.

What was the origin of the LIBRA controversy?

As part of a project named “Viva La Libertad” (Long Live Freedom), Delaware-registered corporation Kelsier Ventures introduced the Libra (LIBRA) token on Feb. 14. Within minutes of its launch, President Milei posted about it on his X account.

Additionally, he defined it as an endeavor to boost Argentine economic expansion by assisting startups and small enterprises with private investment made possible by blockchain technology.

Milei described the token as a valid private economic endeavor and posted the token’s blockchain contract address as part of his support.

Within 40 minutes, the price of LIBRA surged from near-zero to approximately $5 per token. It also reached a peak market capitalization of roughly $4.5 billion.

The euphoria proved short-lived as the token’s founders, who controlled approximately 70% of the total supply, liquidated their holdings at peak prices.

This massive sell-off triggered an 85% price collapse within hours. It also caused losses between $100 million and $250 million

Milei has consistently denied any improper conduct and maintained that his social media activity was intended to raise awareness about cryptocurrency’s potential to support Argentine businesses rather than encourage direct investment. The president emphasized that his posts followed a meeting with Libra’s founders and represented personal views.

The anti-corruption office’s decision focuses specifically on whether Milei violated ethics rules for public officials. They concluded that personal social media usage does not constitute improper use of government resources.

The ongoing federal criminal investigation examines different aspects of the case and potentially includes securities law violations and market manipulation charges. Criminal courts operate independently from administrative ethics reviews, which means separate legal proceedings could reach different conclusions.



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Argentina Clears Javier Milei in Libra Token Controversy
GameFi Guides

Argentina Clears Javier Milei in Libra Token Controversy

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Argentina’s Anti-Corruption Office has cleared President Javier Milei in the Libra crypto controversy, saying he didn’t break any public ethics rules. The investigation looked into a post-Milei made back in February on his personal X account, where he promoted the Libra ($LIBRA) token.

At first, the token soared in value, but it later crashed hard, causing outrage and financial losses for many investors.

The OA concluded that Milei was acting in a personal capacity and that his post did not involve any public resources or reflect official government policy. 

“In short, [Milei’s promotional post], which is not connected to administrative acts, has no allocation of public resources or institutional support, should be interpreted as an act of individual or private communication that has not generated any official public policy direction of any kind,” the report noted. With that, the OA determined that there was no misuse of office or unethical conduct on Milei’s part.

The controversy began when Milei publicly endorsed the Libra cryptocurrency, describing it as a way to empower small businesses and startups in Argentina. The Libra token shot up fast, reaching a market cap of over $2 billion, but it didn’t last long. Within days, it crashed by more than 90%, leaving many everyday investors with heavy losses. 

After the collapse, Milei quietly deleted his original post about the token, but by then, the damage was done. Local media quickly labeled the whole episode “Cryptogate,” and opposition leaders started calling for his impeachment. Angry investors also began filing lawsuits, saying they were misled by the promotion.

Feeling the heat, Milei himself called on the Anti-Corruption Office to investigate whether he, or anyone in his government, had done anything wrong. While the OA’s report may bring a close to the administrative probe, the political fallout hasn’t entirely faded. 

The case drew further scrutiny in May when a federal judge requested access to Milei’s bank records, along with those of his sister, who reportedly had some level of communication with Hayden Davis, one of the creators of the Libra token. 

Not long after, Milei’s government quietly dissolved the investigation unit handling the case, stating that its work had been completed and handed over to the public prosecutor.

Meanwhile, legal troubles surrounding the case are still very much alive. A federal criminal investigation remains open, and a separate class action lawsuit involving plaintiffs from Argentina, the United States, and the United Kingdom is moving through the courts. 

In a major development, Circle, the issuer of the USDC stablecoin, recently froze two wallets linked to Davis, which held over $58 million. This action followed a court order from the U.S. District Court in the Southern District of New York.

According to the OA’s report, Davis first met Milei on January 30, but officials stressed that Davis “had and has no ties to the Argentine government” and was introduced to Milei by representatives of KIP Protocol, who were partners in the Libra project.

Also Read: Trump Wallet Controversy Gets Everyone Confused: Scam or Not?



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