LIBRA Token: Argentina’s President Faces No Ethics Breach Over His Endorsement

Key Takeaways: Argentina’s Anti-Corruption Office ruled that President Milei did not breach ethics laws by endorsing LIBRA. LIBRA’s value plunged 94% after Milei’s post, leading to $251 million in investor losses. A federal court investigation continues as critics question the transparency of the LIBRA probe. Argentina’s Anti-Corruption Office has ruled that President Javier Milei did not violate public ethics laws when he publicly supported the LIBRA memecoin earlier this year. In a resolution issued on June 5 , the agency concluded that Milei’s endorsement of the LIBRA token in a Februart 14 post on X was made in a personal capacity and did not involve the use of government resources. The ruling comes amid sharp political criticism after the token’s rapid collapse, which reportedly cost investors $251 million. LIBRA Token Plunges 94% After Milei’s Post Sparks $4B Surge The controversy erupted after LIBRA briefly soared to a $4 billion market capitalization following Milei’s post, only to lose roughly 94% of its value within hours — a pattern that resembled a classic pump-and-dump scheme. Opposition lawmakers quickly called for Milei’s impeachment , arguing that the president’s actions had misled retail investors. In its written decision, the Anti-Corruption Office noted that Milei has maintained a personal presence on X since 2015 and that his posts, even when touching on public matters, are expressed “in a non-institutional manner” and “as a platform for political and personal expression.” Milei has denied promoting LIBRA , claiming he merely “spread the word” about the token. However, the fallout has already impacted his approval ratings. It all began with this post at 5:01 PM ET from Javier Milei. As seen during President Trump’s memecoin launch, the first hour was full of speculation: Was this a hack or a real launch? It turned out to be real as multiple other Argentinian politicians posted the news. pic.twitter.com/cL0ZQgxtCB — The Kobeissi Letter (@KobeissiLetter) February 15, 2025 According to a March survey by Zuban Córdoba, national approval for Milei’s administration declined from 47.3% in November to 41.6% following the LIBRA controversy. Meanwhile, the legal battle is far from over. A federal criminal court continues to investigate the president’s role in the token’s market manipulation. Critics argue that the probe has lacked transparency and independence. “It was always a fake, they never dared to investigate anything at all, and they’re covering each other up because they’re completely up to their necks in it,” Argentine lawmaker Itai Hagman posted on X on May 20. Ahora por decreto disolvieron la Unidad de Tareas de Investigación dedicada al escándalo de Libra. Otro principio de revelación más: siempre fue un fake, nunca se animaron a investigar absolutamente nada, y se cubren entre ellos porque están completamente hasta las manos. pic.twitter.com/yQONDdZUgJ — Itai Hagman (@ItaiHagman) May 20, 2025 Further adding to the controversy, Milei signed a decree on May 19 to dissolve a task force originally formed to investigate the LIBRA case. No penalties have been imposed on Milei or any other official connected to the incident so far. Over 86% of Libra Meme Coin Traders Sold at a Loss As reported, on-chain analysis has revealed that the majority of Libra meme coin investors suffered significant losses in what appears to be a classic pump-and-dump scheme. According to blockchain analytics firm Nansen, over 86% of traders , amounting to 15,430 wallets that traded with gains or losses exceeding $1,000, sold at a loss. The combined realized losses reached a staggering $251 million. Central figures behind the LIBRA token launch include Hayden Davis , CEO of Kelsier Ventures, and Julian Peh, CEO of KIP Protocol. Davis and Kelsier Ventures reportedly profited approximately $100 million from the token’s launch, though Davis insists he does not directly hold the tokens and has no plans to sell them. The post LIBRA Token: Argentina’s President Faces No Ethics Breach Over His Endorsement appeared first on Cryptonews .

Source: cryptonews