Argentina’s Anti-Corruption Office Clears President Milei in Crypto Scandal

The OA concluded that President Milei's actions did not constitute improper conduct. The office stated that there was no evidence of personal gain or intent to defraud investors on the president's part. The OA emphasized that Milei's promotion of LIBRA was consistent with his

On February 14, 2025, President Milei took to social media to endorse LIBRA, a newly launched cryptocurrency associated with the KIP Protocol. He described it as a private initiative aimed at stimulating Argentina's economy by funding small businesses and entrepreneurs. The endorsement led to a rapid surge in LIBRA's value, reaching a market capitalization of $4.6 billion within hours. However, the token's value plummeted shortly thereafter, resulting in significant financial losses for investors and sparking allegations of a "rug pull" scheme.

The sudden collapse prompted widespread criticism and led to over 100 criminal complaints against Milei, accusing him of fraud and ethical violations . Opposition parties, including Unión por la Patria, called for impeachment proceedings, arguing that the president's actions had caused substantial harm to investors and the nation's credibility.

In response to the mounting allegations, President Milei requested the OA to investigate the matter, including his own conduct. The OA's investigation focused on determining whether there was any misuse of public office or ethical breaches in the promotion of LIBRA.

Despite the OA's findings, the LIBRA incident has had lasting political ramifications. Opposition leaders have continued to criticize the president, arguing that his endorsement of an unregulated cryptocurrency demonstrated poor judgment and a lack of due diligence. Some lawmakers have expressed concerns about the potential for similar incidents in the future if clear guidelines are not established for public officials endorsing financial products .

Additionally, the scandal has led to ongoing investigations by judicial authorities. Federal Judge María Servini is overseeing a probe into the financial operations related to LIBRA, including the activities of individuals closely associated with the president, such as his sister Karina Milei and advisor Mauricio Novelli . The investigations aim to determine whether any laws were violated during the promotion and subsequent collapse of the cryptocurrency.

The public's reaction to the OA's exoneration of President Milei has been mixed. Supporters argue that the president acted in good faith and that the OA's findings vindicate him. Critics, however, contend that the incident underscores the need for greater oversight and transparency in the promotion of financial products by public officials.

The LIBRA controversy has also prompted discussions about the regulation of cryptocurrencies in Argentina. Lawmakers are considering new legislation to establish clear guidelines for the endorsement and promotion of digital assets, aiming to protect investors and maintain public trust in financial markets.

As Argentina navigates the aftermath of the LIBRA incident, the government's approach to cryptocurrency regulation and the ethical responsibilities of public officials remain under close scrutiny. The outcomes of ongoing investigations and potential legislative reforms will likely shape the country's financial landscape and political discourse in the months to come.