Argentina Reopens LIBRA Memecoin Scandal Investigation Involving President Milei

Argentina’s political landscape is facing renewed turmoil as opposition parties have reopened an investigation into President Javier Milei’s involvement in the controversial LIBRA memecoin scandal. The move comes just weeks before crucial October elections, amplifying public and political scrutiny of the libertarian leader. The decision to reopen the probe, which centers on allegations of insider trading and a pump-and-dump scheme, follows fresh corruption claims tied to Milei and his sister, Karina, further complicating the president’s efforts to maintain credibility. The scandal, dubbed “Cryptogate” by local media, has sparked widespread public outrage and threatens to reshape Argentina’s political and economic narrative.

The LIBRA scandal erupted in February 2025 when President Milei promoted the memecoin on social media, claiming it would bolster Argentina’s economy by funding small businesses. The token’s value surged to a total market value of $4.5 billion before crashing within hours, resulting in $251 million in losses for approximately 44,000 investors. Critics, including opposition lawmakers, labeled the incident a classic “rug pull,” where insiders inflate a cryptocurrency’s value before selling off their holdings, leaving retail investors with worthless tokens. Milei deleted his promotional post shortly after the collapse, claiming he was unaware of the project’s details and denying any personal financial gain.

Political Firestorm and New Allegations

The investigation, initially launched in April but stalled due to bureaucratic obstacles, has now gained new life in August 2025, following leaked audio recordings implicating Milei and his sister in a separate bribery scheme. The tapes, attributed to former presidential attorney Diego Spagnuolo, detailed alleged cash-for-favors dealings involving pharmaceutical sales to Argentina’s disability services agency. Spagnuolo confirmed the authenticity of the recordings, intensifying public distrust. The allegations have fueled accusations of systemic corruption within Milei’s inner circle, prompting opposition parties to push for accountability. Maximiliano Ferraro, a legislator from the Civic Coalition ARI and head of the reactivated investigative commission, emphasized that unanswered questions about insider trading in the LIBRA case necessitated the probe’s revival.

Public anger over these developments boiled over during a recent appearance by Milei, where protesters pelted him with broccoli and other objects, an incident that underscored growing discontent. No injuries were reported, but the event captured national attention and highlighted the deepening rift between Milei’s administration and the public. The timing is particularly damaging, as Argentina approaches midterm elections that will determine the balance of power in Congress. Political analysts suggest the scandal could erode Milei’s reputation as an anti-corruption advocate, a cornerstone of his 2023 campaign.

The investigative commission, comprising 136 of the Chamber of Deputies’ 257 lawmakers, has set a deadline of November 10, 2025, to deliver its findings. Federal prosecutor Eduardo Taiano is also leading a criminal investigation into allegations of fraud, bribery, and influence peddling tied to LIBRA, with forensic analysis focusing on financial activity during the token’s peak trading days on February 14 and 15. Blockchain data from firms like Bubblemaps and TRM Labs revealed suspicious transactions, including $99 million withdrawn by insiders, further supporting claims of market manipulation. The commission’s work will likely shape public perception and influence voter sentiment in the upcoming elections.

As the investigation unfolds, Milei’s administration faces mounting pressure to address the allegations transparently. In May 2025, Milei had the probe unit disbanded that was investigating the LIBRA scandal. The president has maintained his innocence, pointing to the Anti-Corruption Office’s June 2025 ruling that cleared him of wrongdoing, citing that his social media post was made in a personal capacity. However, opposition leaders argue that his influence as president directly contributed to the token’s hype and subsequent collapse, raising ethical concerns about public officials endorsing speculative financial products. With the November deadline looming, the findings of the investigative commission could have far-reaching consequences for Milei’s presidency.