Milei Cleared in LIBRA Crypto Scandal: A Victory or a Cover-Up?

Argentina’s Anti-Corruption Office (OA) cleared President Javier Milei of ethical misconduct related to the LIBRA cryptocurrency scandal on June 5, 2025, according to its official report.

The OA concluded that Milei’s promotion of the LIBRA token on his personal X account on Feb. 14, 2025, was a private action, unrelated to his official presidential duties or the use of public resources.

The report stated that Milei’s X account, active since 2015, serves as a platform for personal and political expression, protected under Argentina’s constitution. Following the ruling, Milei’s supporters viewed it as justification, while his critics questioned the investigation’s objectivity.

The LIBRA token, linked to Project Libertad to fund Argentine small businesses, saw its market capitalization surge as high as $4.6 billion following President Milei’s endorsement before crashing by 97% within hours, resulting in estimated investor losses of $251 million, per Nansen blockchain analytics.

Following the alleged pump-and-dump action, more than 100 criminal complaints for fraud and illicit association were lodged against Milei.

The OA’s Verdict: Ethical Clearance or Political Shield?

Despite the OA’s decision, a federal criminal court in Argentina, led by Judge María Servini, continues to investigate Milei’s involvement, with no timeline for resolution. On the international level, a U.S. court froze $57 million in USDC linked to the scandal, showing global implications of the president’s action. 

Blockchain data reported that between $87.4 million and $107 million was withdrawn by eight digital wallets linked to LIBRA’s creators before the crash, raising suspicions of insider trading.

The scandal has increased political tensions. The opposition parties, led by Kirchnerists, have called for Milei’s impeachment, with economist Itai Hagman describing the OA investigation as “fake.” 

A March 2025 Zuban Córdoba poll of 1,600 respondents showed Milei’s approval rating falling from 47.3% to 41.6%, a sign of the decreasing public trust.

Milei, who deleted his promotional X post, denied endorsing LIBRA, claiming he only “spread the word” in a Todo Noticias interview.

Libra Scandal Raises Stakes for Argentina’s Financial Future

The LIBRA scandal exposes the risks of political figures endorsing cryptocurrencies, especially at a time when Argentina is facing economic instability. The president’s actions were described as the “worst crisis” of his presidency, challenging his reputation as a financial reformer.

On May 19, 2025, Milei dissolved a task force investigating the scandal in Decree 332/2025, taking no action against officials, a decision critics argue reflects a lack of accountability 

Legal investigations continue, including a fraud complaint against Milei in Spain. The scandal, compounded by developer Hayden Davis’s admission of $113 million in gains, has raised concerns over cryptocurrency regulation and public official responsibility. 

While the OA’s ethical clearance offers a temporary relief for Milei, ongoing investigations and public discontent suggest the LIBRA controversy will remain a major challenge for his administration.