Argentine President Milei Cleared of Misconduct Over LIBRA Promotion: Report
Argentine President Javier Milei has been cleared of any wrongdoing concerning his promotion of the LIBRA memecoin in February, according to a resolution issued by the country’s anti-corruption office. The office determined that Milei’s actions, specifically a post on X (formerly Twitter) promoting LIBRA, were made in a personal capacity as an economist, not as a public official. The resolution highlights that Milei’s personal X account predates his presidency and even his previous term as a deputy. The post, which touted LIBRA as a tool for Argentine small and medium-sized enterprises (SMEs) to raise capital, led to a dramatic surge in the memecoin’s market capitalization to approximately $4.5 billion.
However, this rapid growth was short-lived. Hours after Milei’s endorsement, he deleted the post, citing a lack of awareness regarding the project’s specifics. This retraction triggered a significant sell-off, resulting in a 90% crash and wiping out over $4 billion in market value. On-chain data analysis from Nansen reveals that the vast majority of traders (86%) incurred losses, totaling approximately $251 million, while a smaller percentage secured profits of around $180 million.
The scandal deepened with the revelation of text messages from Hayden Davis, LIBRA’s co-creator, boasting about his influence over President Milei due to payments made to Karina Milei, the president’s sister and a prominent figure in his administration. This raises serious questions about potential conflicts of interest and undue influence. Following the release of investigative findings shared with prosecutors, President Milei has reportedly closed down the LIBRA investigative unit. The incident highlights the risks associated with high-profile endorsements of cryptocurrencies and the need for greater transparency and accountability in the cryptocurrency market. The case underscores the volatile nature of memecoins and the potential for significant financial losses for investors.
