Relief for Javier Milei: Argentina Watchdog Clears President in LIBRA Crypto Scandal
The controversial LIBRA crypto scandal involving Argentine President Javier Milei has taken a significant turn. A government watchdog has officially cleared the president of wrongdoing related to his social media activity promoting the token, a development keenly watched by the Argentina crypto community.
Javier Milei Cleared by Argentina Watchdog
Argentina’s Anti-Corruption Office recently announced its decision to clear President Javier Milei concerning his promotion of the Libra (LIBRA) memecoin on X (formerly Twitter). The watchdog concluded that Milei was acting strictly in a personal capacity when he made the post on February 14.
This ruling is based on the assessment that no federal ethics laws for public officials were violated because the action was not part of his official presidential duties. The Anti-Corruption Office stated in its June 5 resolution that Milei’s social media activity, in this instance, represented his private views.
Understanding the LIBRA Crypto Scandal
The LIBRA crypto scandal gained prominence after Milei’s X post coincided with a massive pump and dump event for the LIBRA token. Shortly after the post, LIBRA’s market cap surged to $4 billion but then crashed dramatically by about 94% within hours. This volatility reportedly led to investors losing a combined $251 million, sparking outrage and calls for Milei’s impeachment from opposition members.
The incident had characteristics often associated with pump-and-dump schemes, where promoters artificially inflate a token’s price before selling off their holdings, causing the price to plummet.
Why the Watchdog Ruled Milei Was Acting Personally
The Anti-Corruption Office provided specific reasons for its decision to clear Javier Milei. Key points included:
- No public resources were used in connection with the social media post.
- Milei has maintained a personal X account since 2015, years before becoming president.
- While the account sometimes mentions government policies, it functions primarily as a platform for personal and political expression, distinct from official institutional communication.
The watchdog emphasized that these actions were typical of any citizen expressing political ideas publicly and that Milei was exercising his civil and political rights under Argentina’s constitution. Milei himself has maintained he did not promote the token but merely “spread the word” about it.
What’s Next for the Argentina Crypto Scene?
Despite the Anti-Corruption Office’s decision that Milei cleared ethics violations, the matter is not entirely closed. A federal criminal court in Argentina is reportedly still conducting an investigation into Milei’s potential involvement in the crypto scandal. This parallel investigation means legal scrutiny continues, even if the ethics watchdog has concluded its review.
Adding another layer to the situation, Milei signed a decree on May 19 to dissolve a task force that was specifically created to investigate the Libra scandal. Critics argue that this move hindered a thorough investigation and suggests potential cover-ups, although no action was taken against Milei or other officials by that task force before its dissolution.
Impact on Milei’s Image After the Crypto Scandal
While the ethics ruling is a legal victory for Javier Milei, the public perception surrounding the LIBRA crypto incident appears to have taken a hit. Data from a March poll by Zuban Córdoba indicated a negative impact on Milei’s image and the national management approval rating.
The poll showed that trust in Milei among respondents decreased following the scandal. The percentage of Argentines who trusted Milei fell from 47.3% in November to 41.6% in March, according to the survey of 1,600 respondents.
This suggests that even if legally cleared by the ethics body, the political and public relations fallout from the Argentina crypto event continues to affect the president’s standing.
Summary
In a significant development, Argentina’s Anti-Corruption Office has cleared President Javier Milei of ethics violations in the LIBRA crypto scandal, ruling he acted personally on social media. However, a federal criminal investigation remains ongoing, and the incident appears to have negatively impacted Milei’s public image and approval ratings in Argentina.
