The Libra Crypto Scandal investigation has been concluded into the public eye. Officially, President Milei ordered that the task force studying his part in the controversial project be dissolved.
On May 19, Milei and Justice Minister Mariano Cúneo Libarona put out a decree that ended the Investigative Task Unit (ITU). Despite growing criticism from opposition groups asking for more transparency, the ministry was formed only three months ago.
Key-Takeaways:
- President Milei has decided to disband the Libra Crypto Scandal task force after pressure for greater transparency, as probes happen elsewhere.
- The scandal led to $251 million being lost by more than 15,000 investors, which lowered Milei’s approval and raised questions about politicians meddling in cryptocurrencies.
Presidential Endorsement Sparks Libra Crypto Scandal
The Libra Crypto Scandal started in February 2025. President Milei advertised the LIBRA token on his verified X social media account.
His support helped turn an almost pointless cryptocurrency into a $5 billion market. The individual tokens broke through to a price of $5 before the whole project fell apart. It looked like the rise and fall was an example of a pump-and-dump scheme. The main issue raised about this situation is that insider trading and market manipulation were involved.
On February 19, 2025, the ITU was formed by government officials. This action occurred only a few days after a post on social media by Milei led to the Libra Crypto Scandal.
The task force was set up to look into the president’s involvement in starting and ending the token. It was carried out to investigate whether the incident contained any acts of wrongdoing.
Yet, the government has not made the task force’s findings public. Thus, much about the Libra Crypto Scandal is still unclear.
Groups opposing the decision wanted an investigative commission to be set up to reveal all the facts about the Libra Crypto Scandal. Many countries are looking into the Libra Crypto Scandal, with authorities in the US and Spain reportedly active on the case.
Significant Losses to Investors Are a Key Aspect of the Libra Crypto Controversy
The Libra Crypto Scandal led to major financial damage, according to blockchain data. Over 15,000 wallets took part in trading LIBRA tokens and 86% ended up with losses.
In total, the damage is estimated to be around $251 million. President Milei’s claims about just a few Argentine people being caught up in this are contradicted by the scandal’s global reach.
Even though President Milei reported that the number affected was not many—roughly 5,000 of them Chinese and American, with only four or five Argentinians—the data brings a different picture.
It is clear from examining the blockchain that Argentine wallets are heavily involved. It stands in the way of Milei trying to minimize the national impact of the scandal.
Since the financial crisis, President Milei’s public approval has drastically declined. Around 58% of Argentines have seen their trust in the president fall after the events of the Libra Crypto Scandal.
This is a big political blow. Because of his part in the failed crypto project, Milei’s image has suffered not only in his homeland but also internationally.
The President Defends Against the Libra Crypto Scandal
During an appearance on Todo Noticias, President Milei took steps to differentiate himself from the Libra Crypto Scandal. He insists that he shared information about the project but did not actively campaign for it.
Milei: I didn’t promote it, I shared it.
“I acted in good faith and took a hit,”
“Did the State lose money? No. Did Argentinians lose money? Maybe four or five at most. The vast majority of investors are Chinese and American.”
“I shared this the same way I’ve shared hundreds…
— db (@tier10k) February 17, 2025
Milei said that LIBRA would make it easier for entrepreneurs to get financial support. Despite the outcome of the scandal, he persisted in claiming he acted with good motives.
According to him, he was only handing off what appeared to be a legitimate project. He explained, “I discovered a method for supporting entrepreneurs and I shared it with others.”
He states that what he did was meant with good intentions and accepts every consequence. However, he claims the accusations about the Libra Crypto Scandal are unjustified.
Nevertheless, people who question endorsements think that when a president promotes speculative investments, there is a responsibility to act properly, especially if the investments might pump and dump. Because of the Libra Crypto Scandal, many are asking if politicians may affect cryptocurrency markets by promoting them through official means.
Though the group set up here has ended, lawsuits in other countries are continuing. Investigations into the project’s fallout are being carried out by Argentine courts.
Authorities from the U.S. and Spain are also studying how Libra’s problems impacted the rest of the world.
While the domestic task force has been disbanded, there are more legal moves happening abroad. Authorities in Argentina are investigating how the project collapsed.
United States and Spanish officials are also exploring how the Libra Crypto Scandal affects nations across borders.
Conclusion
The Libra Crypto Scandal in Argentina brought significant change to cryptocurrency regulation, and now officials are made responsible for their support of digital asset initiatives that could cause trouble for investors around the globe.
