No ethics breach: Javier Milei acquitted in $280M LIBRA crypto case

Javier Milei, the president of Argentina, was cleared of wrongdoing by the country’s Anti-Corruption Office for his February social media endorsement of the LIBRA memecoin, which later collapsed, triggering multi-million-dollar investor losses. According to a June 5 resolution , the agency concluded that Milei acted in a personal capacity when he posted about the LIBRA token on his X account and did not violate federal ethics laws applicable to public officials. Authorities noted that no public resources were used and that his account, active since 2015, is used primarily for political and personal expression, not official communication. The Anti-Corruption Office further stated that Milei was exercising his civil and political rights under Argentina’s constitution. While his posts may reference government matters, they do not reflect institutional positions unless issued through official channels, it added. Milei remains under scrutiny The resolution has effectively ended the administrative ethics probe into Milei’s role in the incident that began earlier this year. However, a separate criminal investigation remains ongoing. A federal court continues to examine potential violations of securities laws and allegations of market manipulation. This includes probing whether Milei and his associates had prior knowledge of LIBRA’s price trajectory and insider activities surrounding the token’s launch. Federal judge María Romilda Servini has taken charge of the criminal investigation. A scheduled hearing on May 18 saw no appearance from Milei or his sister Karina, who serves as Secretary General of the Presidency. Servini has since requested that the Central Bank provide banking records for both siblings dating back to 2023. What is the LIBRA meme coin scandal? The LIBRA memecoin was introduced on February 14 as part of a blockchain initiative branded “Viva La Libertad” by Delaware-based firm Kelsier Ventures. That same day, President Milei posted support for the token, describing it as a tool to boost economic growth and aid Argentine startups through blockchain-driven private investment. He also shared LIBRA’s contract address publicly. LIBRA rallied over 3,000% within minutes , reaching a market capitalisation of more than $4 billion upon the President’s endorsement. However, the rally was short-lived. Developers and insiders, allegedly controlling around 70% to 85% of the token’s supply, began selling at peak prices, triggering a collapse of over 90% within hours. Investor losses have been estimated between $100 million and $280 million . Following public backlash, Milei deleted the posts and denied any formal involvement with the project. At the time, he claimed his remarks were made in good faith to promote innovation, not as an endorsement for investment. Nevertheless, critics have argued that Milei used his office to fuel speculative hype around the token. Argentina’s Chamber of Deputies responded by approving a formal investigation into the LIBRA scandal on April 8. Lawmakers passed three resolutions, including the establishment of a commission to probe the incident, summons for key cabinet members, and a request for documents from the executive branch. The post No ethics breach: Javier Milei acquitted in $280M LIBRA crypto case appeared first on Invezz

Source: Invezz