Anti-Corruption Authority in Argentina Clears President Milei in the LIBRA Memecoin Scandal
Headline: Javier Milei Skates on Public Ethics Charges in Libra Memecoin Promotion Scandal, But Politicians and Judges Keep the Heat On
Key Insight: Despite the Argentine Anti-Corruption Office clearing President Javier Milei of any public ethics violations, the Libra memecoin controversy continues to spur legal and political fallout, with Judge María Romilda Servini de Cubría investigating potential fraud and misconduct, and a class-action lawsuit in the US accusing Milei of deceptive promotion and negligence.
The Libra (LIBRA) memecoin drama surrounding Argentine President Javier Milei has taken an unexpected turn, following a resolution by Argentina's Anti-Corruption Office on June 5. Milei, who acted in a personal capacity, was found to have adhered to the law when endorsing the Solana-based token via social media. His unofficial Twitter account, known for hosting a mix of political and personal views, has been an integral part of his rhetoric even before he ascended to the presidency.
Caution compounded as Libra's value soared to over $4.5 billion following Milei's post, only to crash spectacularly by 94%, resulting in hefty losses to investors amounting to approximately $251 million. Critics, among them members of the Argentine Chamber of Deputies, have continued to question Milei's actions, while some even advocated for impeachment, claiming his endorsement of Libra had caused widescale financial hurt.
However, the anti-corruption watchdog confirmed that no misuse of public funds had occurred and that Milei had been expressing his constitutional rights as a citizen. However, this ruling has not quite silenced the storm. Investors, lawmakers, and the general public remain skeptical, as the LIBRA incident continues to impact Milei's popularity ratings and fuel discussions about the role of cryptocurrencies in politics.
A research firm, Zuban Córdoba, reported a decline in Milei's trust ratings, falling from 47.3% to 41.6% post-LIBRA. Despite the investigations clearing Milei of wrongdoing, critics, like those from the Argentine Chamber of Deputies, have pointed to the thoroughness and transparency of the investigation as potential areas of concern.
A federal criminal court is also conducting a separate investigation into Milei's connection to the memecoin scandal. Recent text messages have unveiled boasts from the co-creator about payments to Milei's sister, Karina Milei, a prominent government official. To this day, no official action has been taken.
In response, Milei rallied a task force to uncover the truth behind the Libra incident. According to the Anti-Corruption Office, led by Alejandro Melik, the president's social media posts represented his opinions, independent of government policies. However, the federal court's investigation is ongoing, keeping the LIBRA memecoin controversy fresh in the public eye.
Further Developments and Ongoing Controversy
Meanwhile, the political and public landscape has shifted since the dismissal of the UTI Unit, which had taken on the task of looking into the subtle ties between Milei and the Libra creators. As of May 19, the government shuttered the UTI, citing the bureau's conclusion of its investigation and subsequent handover of findings to the public prosecutor's office.
Nevertheless, the official data or findings from the UTI have yet to be disclosed, and the public prosecutor has kept silent on their determination regarding possible financial crimes or conflicts of interest. Questions about transparency in cryptocurrency policy surrounding Milei's interactions with the Libra team persist, and legal challenges abroad – including a class-action lawsuit in the United States – continue to create obstacles for the Argentine president.
| Aspect | Latest Update ||--------------------------------------|-----------------------|| Internal (Executive) Investigation | Closed; UTI disbanded[H1][H4] || Anti-Corruption Office Investigation | Closed; Milei cleared[H2] || Judicial Investigation | Ongoing[H3] || Public Findings | Not yet disclosed || Market Impact | Extreme volatility || Reputation Impact | Damage apparent[H5] |
Further Reading:
- Argentina's anti-corruption office clears President Javier Milei of wrongdoing in Libra memecoin case
- CNN Argentina: The Libra memecoin scandal: Where does it stand and what comes next?
- President Javier Milei survives ethics charges over promotion of Libra memecoin
The ongoing scrutiny of Argentine President Javier Milei in the Libra memecoin controversy has not been limited to local politics, as a class-action lawsuit in the US accuses him of deceptive promotion and negligence (general-news). The investigation by Judge María Romilda Servini de Cubría into potential fraud and misconduct continues, adding to the broader debate about the intersection of crime-and-justice and the role of cryptocurrencies in politics (politics).
