Argentina Clears Milei in LIBRA Token Controversy Amid 90% Price Collapse

Argentina’s Anti-Corruption Office has cleared President Javier Milei of any wrongdoing related to his promotion of the LIBRA token. This decision comes amidst ongoing international investigations and investor backlash following the token’s dramatic price collapse. The office determined that Milei’s actions were private and did not involve misuse of public resources or official influence. This ruling, however, does not halt ongoing investigations abroad, particularly in the United States, where federal authorities are examining potential market manipulation linked to the token’s volatility.

Despite the clearance in Argentina, U.S. authorities continue to probe potential market manipulation. Collective lawsuits from investors in multiple countries highlight the broader impact of LIBRA’s dramatic price collapse. These legal actions underscore the complexities of regulating cryptocurrencies that intersect with political figures. Notably, other major cryptocurrencies have remained largely unaffected by the fallout, suggesting the controversy is isolated to LIBRA’s unique circumstances. Industry analysts warn that the ongoing investigations could prompt tighter regulations on how public officials engage with crypto promotions, potentially reshaping market oversight frameworks.

The LIBRA token, a Solana-based memecoin, experienced a dramatic market trajectory following President Milei’s promotion. After peaking at a $2 billion market cap, the token’s value plummeted by 90%, eroding investor confidence and triggering widespread financial losses. As of June 8, 2025, LIBRA’s market cap stands at approximately $8.32 million, with a circulating supply exceeding 256 million tokens. Despite a recent price increase over the past week, the token remains down significantly over three months, reflecting ongoing volatility. This price behavior has intensified calls for enhanced regulatory scrutiny and investor protections, particularly regarding endorsements by influential figures.

Research highlights that the LIBRA incident may serve as a catalyst for regulatory reform, especially concerning the promotion of cryptocurrencies by public officials. Historically, investigations into market manipulation involving political actors have led to significant changes in market governance and transparency standards. President Milei’s statement, “The Unidad de Tareas de Investigación (UTI) has accomplished its objective,” suggests a recognition of the need for clearer guidelines and accountability. Moving forward, regulators worldwide may implement stricter disclosure requirements and conflict-of-interest policies to prevent similar controversies and protect investors.

The clearance of President Javier Milei by Argentina’s Anti-Corruption Office marks a significant development in the LIBRA token controversy, yet it does not conclude the broader legal and regulatory challenges facing the cryptocurrency. Ongoing investigations in the U.S. and collective investor lawsuits emphasize the complexities of crypto market oversight, especially when intertwined with political endorsements. The LIBRA case underscores the urgent need for robust regulatory frameworks to ensure transparency and protect investors from market manipulation risks. As the crypto landscape evolves, stakeholders must remain vigilant and proactive in addressing these challenges to foster a more secure and trustworthy market environment.