Argentine President Cleared in Libra Memecoin Controversy

Argentine President Javier Milei has been cleared of any wrongdoing by the country’s Anti-Corruption Office in relation to his promotion of the Libra memecoin. The office, in a June 5 resolution, stated that Milei was acting in a personal capacity when he endorsed the Libra (LIBRA) token in a February 14 post on the social media platform X. This decision is significant as it underscores that Milei did not violate Argentina’s federal ethics laws for public officials, given that no public resources were used in the incident.

The controversy surrounding Milei's endorsement of Libra began when the token reached a $4 billion market cap shortly after his post, only to crash around 94% hours later. This rapid fluctuation in value is characteristic of a classic crypto pump-and-dump scheme. The incident prompted members of the opposition party to call for Milei’s impeachment, citing the significant financial losses incurred by investors, estimated at a combined $251 million.

The Anti-Corruption Office emphasized that Milei has been using his X account since 2015, long before he became president, to share his opinions. The office noted that while the account sometimes references public policies or decisions from his administration, it does so in a non-institutional manner, serving as a platform for political and personal expression. This, according to the office, is typical of any citizen who publicly expresses their political ideas and aligns with Milei's civil and political rights under Argentina’s constitution.

Milei has consistently denied any wrongdoing, asserting that he did not promote the LIBRA memecoin but rather "spread the word" about it. Despite the Anti-Corruption Office’s decision, a federal criminal court is still investigating Milei’s involvement in the LIBRA token scandal. On May 19, Milei signed a decree to shut down a task force established to investigate the Libra scandal, with no action taken against Milei or any other Argentine official allegedly tied to the scandal. Critics, however, argue that a legitimate investigation was not conducted adequately, suggesting that the task force was merely a cover-up.

The Libra scandal has had a notable impact on Milei’s public image. According to a March poll, the scandal negatively affected Milei’s image and the national management approval rating, which fell from 47.3% in November to 41.6% in March. This decline was observed after respondents were asked whether they still trusted Milei following the incident. The scandal has undoubtedly left a mark on Milei’s presidency, even as the legal proceedings continue.