Argentina President Cleared in LIBRA Memecoin Scandal Amid Ongoing Legal Battles

Argentina’s Anti-Corruption Office (OA) has concluded that President Javier Milei did not violate public ethics laws when he promoted the LIBRA memecoin cryptocurrency from his personal X account in February 2025.

The LIBRA memecoin, which saw a meteoric rise to a $2 billion market value before crashing 90%, sparked widespread controversy and legal action. Dubbed “Cryptogate” by local media, the scandal led to calls for Milei’s impeachment and lawsuits from investors in Argentina and beyond. The OA’s findings mark the end of the administrative probe, but a federal criminal investigation and a class action lawsuit continue to unfold.

Milei’s Promotion and the Fallout

The LIBRA memecoin saga began when Milei, using his personal X account, endorsed the crypto as a tool to bolster small businesses and startups in Argentina. The token’s value surged rapidly, drawing significant attention before plummeting, wiping out billions in market value. Milei deleted his promotional post shortly after the crash, but the damage was done, with opposition figures accusing him of reckless behavior and investors filing lawsuits to recover losses. The president’s office responded by requesting an OA investigation to assess whether any government officials, including Milei, had acted improperly.

The OA’s report, released in June 2025, determined that Milei’s actions were personal and not tied to official government functions. The report emphasized that the post did not involve public resources or institutional support, framing it as private communication without policy implications. This conclusion has drawn criticism from opposition leaders who argue it downplays the president’s influence and responsibility. Meanwhile, Milei’s defenders maintain that his intent was to promote economic innovation, not to manipulate markets.

The scandal has also raised questions about Milei’s connections to LIBRA’s creators, including Hayden Davis, who met with the president on January 30, 2025. The OA report clarified that Davis, introduced by KIP Protocol representatives, had no ties to the Argentine government. However, Davis’ involvement has come under scrutiny, particularly after Circle froze two of his wallets containing $57.6 million in USDC, following an order from a U.S. District Court in New York. This development has added a layer of complexity to the ongoing legal proceedings.

Legal challenges continue to mount, with a federal criminal court in Argentina investigating potential misconduct and a class action lawsuit gaining traction. The lawsuit, which includes plaintiffs from Argentina, the United States, and the United Kingdom, alleges that investors were misled by the hype surrounding LIBRA. The case has drawn international attention, highlighting the risks of high-profile endorsements in the crypto space. Additionally, Milei’s decision to dissolve an investigation unit in May 2025, shortly after a judge requested his and his sister’s bank records, has fueled speculation about efforts to limit scrutiny.