Argentina President Disbands LIBRA Memecoin Probe Unit After Judge Orders Bank Records Unsealed

Argentina’s government has abruptly dissolved an investigative task force established to examine the controversial LIBRA memecoin scandal, which has implicated President Javier Milei and his sister, Karina Milei. The decision, announced in a statement signed by both the president and the justice minister, comes just days after a federal judge ordered the unsealing of the Mileis’ bank records, raising questions about the timing and motives behind the move.

The Solana based LIBRA token, which Milei publicly endorsed earlier this year, surged to a market value exceeding $2 billion before crashing by over 90%, sparking allegations of fraud and insider trading. The disbandment of the investigative unit has intensified scrutiny of Milei’s administration as Argentina grapples with the political and financial fallout of the scandal.

The LIBRA memecoin, launched in February by Delaware-based Kelsier Ventures, was promoted by Milei as a tool to fund small businesses and startups, with the president sharing a link to the token’s website and its Solana contract address on the social media platform X. Within hours, the token’s value skyrocketed, only to plummet shortly after, wiping out millions in investor funds. Hayden Davis, a self-proclaimed facilitator of the project, later claimed he paid Karina Milei to influence her brother’s endorsement, a revelation that fueled accusations of misconduct. Milei quickly distanced himself from the project, asserting he lacked detailed knowledge of the token and was merely sharing his enthusiasm as a “super technology enthusiast.” He also downplayed the impact on Argentine investors, suggesting most losses were borne by American and Chinese traders.

Investigation Halted Amid Judicial Push for Transparency

The investigative task force, formed to probe potential wrongdoing in the LIBRA scandal, was shuttered with the government claiming it had fulfilled its purpose, according to the justice minister’s statement. However, the timing of the disbandment has drawn skepticism, particularly as Federal Judge María Servini recently ordered Argentina’s Central Bank to lift secrecy protections on the bank accounts of both Javier and Karina Milei. This judicial move aimed to uncover any financial ties to the LIBRA project, with prosecutors also examining video evidence allegedly showing the mother and sister of a LIBRA co-founder emptying bank safe-deposit boxes the day after Milei’s endorsement. Additionally, Servini had previously frozen the finances of three LIBRA co-founders, signaling an intensifying probe into the token’s collapse.

The abrupt end to the investigative unit has sparked criticism from opposition lawmakers and legal experts, who argue it undermines efforts to hold those responsible accountable. The LIBRA scandal, dubbed “Cryptogate” by local media, has already led to fraud complaints against Milei, with some calling for his impeachment. Blockchain analytics firm Nansen reported that 86% of LIBRA traders suffered losses totaling $251 million, while insiders pocketed $180 million, further fueling allegations of a “rug pull” scheme. The decision to disband the task force, coupled with Milei’s refusal to attend a mediation hearing related to a potential civil suit, has deepened public distrust, with a recent poll showing his approval rating at a low of 36%.