Argentinian News Reports DOJ Opens Investigation into Libra Controversy and President Milei

Argentinian news outlet La Nacion has reported that the United States Department of Justice has allegedly launched a probe into the tumultuous memecoin Libra, a token propelled into the spotlight by Argentina’s President Javier Milei before its swift and costly collapse.

According to unnamed sources cited by the publication, the investigation is in its early phases and is being spearheaded by the Fraud Section of the DOJ’s Criminal Division, a unit known for dissecting complex economic crimes, especially those with ties to U.S. entities abroad. The inquiry appears to focus on President Milei’s involvement alongside prominent figures linked to Libra, including Hayden Davis of Kelsier Ventures, Julian Peh of KIP Protocol, and Argentine businessmen Mauricio Novelli and Manuel Terrones Godoy.

The Libra project burst onto the scene when Milei took to social media to promote it as a financial lifeline for Argentine companies. His endorsement ignited a wave of enthusiasm, pulling in thousands of investors eager to capitalize on the opportunity. Yet, within hours of its launch, the token’s value crashed, erasing an estimated $87 million to $107 million dollars and leaving a wake of financial devastation across Argentina, the United States, and other regions. The fallout also reverberated through cryptocurrency platforms like Jupiter and Meteora, amplifying scrutiny of the project’s origins and management.

Scope of Investigation May Expand Across Borders

The DOJ’s efforts could soon broaden, with Argentinian reports suggesting the possibility of collaboration with agencies like the Federal Bureau of Investigation, the Department of Homeland Security, and the Securities and Exchange Commission. This multi-agency approach has been employed in past financial misconduct cases, often relying on detailed evidence collection and cooperating witnesses to unravel intricate schemes. The initial criminal report that sparked the investigation, as highlighted by La Nacion, singles out Milei’s role—specifically his social media posts—while also naming Davis, Peh, Novelli, and Terrones Godoy as key players in the Libra venture.

In Argentina, authorities are conducting a parallel inquiry, delving into Milei’s connections with the project’s founders and assessing whether his actions constituted fraud, influence peddling, or misuse of power. The president has sought to deflect blame, asserting that he only shared the project without officially endorsing it. Addressing the affected investors, whom he labeled “volatility operators,” Milei emphasized their awareness of the risks involved. He has also initiated an internal review within his government but insists he holds no accountability for Libra’s operational failures or its collapse.

According to La Nacion’s sources, the DOJ’s Fraud Section is actively collecting data to chart its next moves, a process that could escalate into a formal task force if substantiated. Official responses from the DOJ and SEC remain elusive, with the latter declining to confirm or deny its participation when questioned by the outlet. This reticence aligns with standard practice during preliminary investigations, as agencies work to define the breadth of any potential misconduct.