What happened?

  • Argentine President Milei announced the disbandment of the $LIBRA investigation team, stating that they had completed their phased mission and transferred the data to the prosecution, but no investigation results were made public.

  • $LIBRA coin once skyrocketed and then collapsed due to presidential endorsement, resulting in millions of dollars in losses. There are criticisms that it may involve a 'rug pull,' and Milei himself is questioned whether he profited his close allies.

  • After the disbandment of the investigation team, the price of $LIBRA surged 60% within 24 hours, with some investors hoping for a rebound in coin price after the scandal fades.

The Argentine president officially disbanded the 'LIBRA meme coin' investigation team

Argentine President Javier Milei recently signed a decree officially disbanding the investigation team originally responsible for investigating the $LIBRA meme coin scandal.

According to the announcement from the official Argentine Gazette on May 20, Milei and the Minister of Justice jointly signed Decree No. 332/2025, announcing the disbandment of the '$LIBRA Special Investigation Task Force (UTI)', citing that the group has 'completed its phased tasks' and the relevant information has been handed over to the Federal Prosecutor's Office for processing.

However, foreign media reports that the group has not publicly released any investigation reports, and the public remains unaware of the identity of the developers behind the $LIBRA meme coin and the flow of funds.

What is the LIBRA meme coin storm about?

Let's go back to February 2025, when Milei tweeted on X to promote the token $LIBRA related to the 'Project Libertad' initiative. The project's official website stated that it would use the funds to support local small businesses in Argentina and promote economic development.

After the president's promotion, the price of $LIBRA skyrocketed within hours, rising from about $0.22 to over $5. However, just an hour later, investors began noticing large-scale sell-offs by early purchasers, causing the $LIBRA price to plummet rapidly by 70%.

According to data analysis company LookOnChain, wallets related to the initial trading of the coin cashed out over $107 million at the price peak. Foreign media (ICOBench) reported that about 60 individual investors lost over $500,000, while another 24 investors lost over $1 million.

The community accused the developers of $LIBRA or those early investors of engaging in a scheme known as a 'rug pull.' Specifically, this involves inflating the price to attract investors, and after the coin's price rises, they sell off massively, ultimately causing losses for later investors.

Of course, besides the project team, President Milei also faced intense criticism from the outside world. After the price collapse, several investors accused the government of speculation and profiting close allies.

In response to societal and opposition backlash, the Milei government quickly established the $LIBRA investigation team to determine whether the president himself and the developers behind the coin were involved in illegal activities or conflicts of interest.

The timing of the investigation team's disbandment is thought-provoking

Now, the group is disbanded without publicly releasing the final investigation results, and local Argentine media (Ámbito) pointed out that the criminal investigation by the Federal Prosecutor's Office will continue.

Additionally, a federal judge has ordered the freezing of assets belonging to several suspected individuals involved in the case while lifting the bank secrecy privileges of President Milei and his family, allowing investigators to delve into financial records.

Milei has consistently denied any illegal dealings with the $LIBRA meme coin, emphasizing that he is only promoting blockchain technology without any profit motive. James Bosworth, founder of the U.S. risk analysis consulting firm Hxagon, pointed out that Milei is gaining momentum, his policy of lifting foreign exchange controls is progressing smoothly, and his party has just achieved a small victory in local elections in the capital, making this the perfect time to close the investigation and avoid unfavorable information before the midterm elections.

After the disbandment of the investigation team, according to CoinGecko data, the $LIBRA coin's price surged over 60% within 24 hours, peaking at $0.04, the highest point in a month. Foreign media analyzed that some investors expected the scandal to gradually fade, believing the coin still had a chance for a 'second spring.'

Regardless, meme coins are still considered high-risk investment targets due to their lack of fundamental support and susceptibility to emotions and public opinion. Investors must carefully assess their risk tolerance and avoid blind investments.

Data sources: CryptoSlate, Decrypt

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