ARGENTINE PRESIDENT JAVIER MILEI CLEARED IN LIBRA MEMECOIN PROMOTION CASE

- Argentina’s Anti-Corruption Office has ruled that President Javier Milei did not violate ethics laws when he promoted the Libra memecoin on social media in February.

- The office concluded Milei acted in a personal capacity, not as a government official. His post on X was deemed a private opinion, not an official endorsement.

- This clears Milei of wrongdoing despite opposition calls for impeachment after investors lost $251 million following a dramatic price pump and crash of the Libra token.

The Libra Scandal:

- Libra surged to a $4 billion market cap hours after Milei’s Feb. 14 post but then collapsed by 94%, leading to allegations of a classic pump-and-dump scheme.

- After the crash, Milei deleted the post and claimed he acted in good faith to highlight crypto projects supporting Argentine businesses, not to promote the memecoin.

- Milei himself requested the investigation and even formed a special task force to examine his ties to the token, which was disbanded after completing its work.

- The case is still under federal court review, with Milei and his sister’s assets frozen pending the ongoing probe.

- The scandal rocked Argentina’s market, causing investor outrage and a stock market crash. Many investors believed Milei’s post implied government backing.

- Despite the Anti-Corruption Office’s findings, critics remain skeptical. They point to concentrated token wallets and questions around government knowledge of the pump.

- The fallout pushed Congress to create a 28-member committee to investigate, but no formal hearings have begun.

- Per reports, key officials failed to appear for questioning, fueling accusations of government avoidance.

Image: Britannica