Argentina Clears Milei in Cryptogate Scandal Amid 1,300% Surge

Argentina’s Anti-Corruption Office (OA) has officially closed its administrative investigation into President Javier Milei, clearing him of ethical misconduct in a high-profile scandal. The controversy, dubbed “Cryptogate,” revolves around Milei’s promotion of a cryptocurrency called $LIBRA on his personal X account in February 2025. The token’s price surged by over 1,300% within hours of Milei’s endorsement, only to crash by over 90% shortly after, leaving many investors with significant losses.

The OA’s ruling determined that Milei was acting as a private citizen and “economist,” not as a public official, when he made the post. Therefore, his actions did not breach the country’s Public Ethics Law. The OA resolution argued that Milei’s personal account was created before his election, and he presented himself as an economist, not a public official. The office also noted it found no evidence that any government act or contract was connected to the $LIBRA project.

Despite the formal clearance, the decision has drawn significant criticism. Critics argue that the ruling overlooks a potential conflict of interest, as the OA is part of Milei’s own government. The political opposition had pushed for a congressional commission to investigate the matter, and a separate federal criminal court has an ongoing investigation into the scandal, examining potential fraud and other crimes.

The case highlights the challenges of applying old-world laws to the new-world realities of cryptocurrency and social media influence. The story is a potent mix of finance, technology, and political power, underscoring the urgent need for clearer guidelines for public figures in the digital age. The political controversy surrounding the decision ensures that questions about the incident are far from settled, despite the legal victory for Milei.