Investigation Clears Javier Milei in Argentina’s Libra Crypto Scandal, Questions Linger

Argentina was at the center of a major crypto scandal involving the Libra token, which experienced a rapid rise and fall in February 2025. Introduced by Kelsier Ventures through the project “Viva La Libertad,” the token was initially promoted by Argentine President Javier Milei on his personal X account. Within minutes, the price skyrocketed from almost nothing to $5 per unit, with a total market value of $4.5 billion. However, the euphoria was short-lived as the founders, who possessed 70% of the token’s supply, sold their holdings at peak prices, causing an 85% crash and leaving investors with substantial losses.

While Milei was cleared of ethical violations relating to the scandal by Argentina’s Anti-Corruption Office (OA), an ongoing criminal investigation continues to examine potential securities law violations or market manipulation. The OA determined that Milei’s promotion of Libra was a personal initiative and not linked to the government’s official policy. A statement from the OA highlighted that Milei’s X account had been a platform for personal and political expression since 2015, preceding his presidency.

Critics, however, argue that the initial probe into Milei’s involvement lacked thoroughness. Economist and opposition lawmaker Itai Hagman criticized the investigation, stating, “It was always a fake; they never dared to investigate anything at all, and they’re covering each other up because they’re completely up to their necks in it.” The ongoing criminal investigation could potentially yield different findings from the ethics review.

The political fallout from the Libra scandal negatively impacted Milei’s approval ratings, according to polling data from March 2025. The incident resulted in a decline in Milei’s approval rating from 47.3% in November 2024 to 41.6% in March 2025. Public trust in public figures endorsing cryptocurrencies took a hit due to the financial losses suffered by investors following the Libra crash.

Argentina has been a stronghold for cryptocurrency adoption due to economic instability and a lack of trust in traditional financial institutions. However, the scandal surrounding Libra has exposed vulnerabilities in the country’s crypto ecosystem, highlighting the urgent need for robust regulatory frameworks to protect investors. The challenge now is to rebuild public confidence and establish a transparent crypto environment while balancing Milei’s push for deregulation with the necessity of safeguarding investors from future incidents.

The future of Libra and Milei remains uncertain as legal issues persist. A class-action lawsuit involving plaintiffs from multiple countries is progressing, and Circle, the issuer of the USDC stablecoin, recently froze wallets associated with Libra’s founders following a court order. Milei faces a critical test of his leadership and credibility as the scandal unfolds, with an ongoing criminal investigation and public scrutiny ensuring that the saga is far from over. Argentina’s journey in the crypto sphere serves as a cautionary tale about the risks involved in unregulated digital assets and the responsibilities of public figures in endorsing them.