Argentina's President Javier Milei has been cleared by the national Anti-Corruption Office regarding his promotion of the LIBRA cryptocurrency. Despite this, a federal criminal court continues to investigate fraud accusations stemming from the coin's rapid collapse after Milei's endorsement, which led to significant investor losses and damaged his public image. Earlier, Javier Milo had ordered the investigation team to disband after investigators tried to check the president's personal accounts.
Key Takeaways
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The Anti-Corruption Office cleared President Milei, stating his LIBRA promotion was a personal act.
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A federal criminal court continues to investigate fraud allegations against Milei.
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The LIBRA memecoin experienced a rapid pump-and-dump, leading to significant investor losses.
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The scandal has reportedly damaged Milei's public approval and trust ratings.
Milei Cleared by Anti-Corruption Office
Argentina's Anti-Corruption Office (ACO) has ruled that President Javier Milei did not violate federal ethics laws when he promoted the LIBRA memecoin. The ACO concluded that Milei was acting in a personal capacity when he posted about LIBRA on X (formerly Twitter) on February 14. The office stated that no public resources were used and that Milei's X account functions as a platform for personal and political expression, consistent with his civil and political rights.
The LIBRA Controversy
Milei's now-deleted X post, which suggested LIBRA could aid small businesses, preceded a dramatic surge and subsequent collapse in the coin's value. LIBRA's market capitalization briefly hit $4 billion before plummeting by approximately 94% within hours. This rapid decline led to accusations of a "rug pull," a crypto scam where developers abandon a project after attracting investors, leaving tokens worthless. Lawyers filed fraud complaints against Milei, alleging an illicit association to commit fraud and a violation of the Public Ethics Law.
Ongoing Legal Scrutiny and Public Reaction
Despite the ACO's decision, a federal criminal court is still investigating Milei's involvement in the LIBRA scandal. The President's office initially stated Milei was unaware of the coin's development and removed the post to prevent speculation. However, Hayden Davis, one of LIBRA's developers, claimed Milei and his team unexpectedly withdrew support. The incident has negatively impacted Milei's public image, with polling data indicating a drop in his national management approval rating following the scandal.
Sources
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Javier Milei's reputation damaged by memecoin crisis, UnHerd.
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Argentine lawyers charge Milei with fraud over cryptocurrency promotion, AP News.
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Argentina Anti-Corruption Office Clears Milei Libra, Cointelegraph.
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