Argentina’s Anti-Corruption Office has cleared President Javier Milei of ethics violations related to his promotion of the $LIBRA memecoin, ruling that his social media post did not constitute an official government endorsement. However, the controversy, dubbed “Cryptogate,” continues to stir trouble, with ongoing criminal investigations and class-action lawsuits in Argentina, the United States, and the United Kingdom.
Milei and the $LIBRA Saga
On February 14, 2025, President Milei praised $LIBRA on his personal X account as a project aimed at strengthening Argentina’s economy by supporting small businesses. The memecoin’s value surged from near zero to $5, reaching a market cap of over $4 billion. However, it quickly crashed by 90%, resulting in $250 million in investor losses, and leading critics to label it a “rug pull” scam.
Over 100 fraud complaints were filed against Milei, and opposition lawmakers called for his impeachment. Milei deleted his post, claimed he was unaware of the project’s details, and ordered an investigation by Argentina’s Anti-Corruption Office. He also created a special Investigation Task Unit (UTI) to examine the launch of $LIBRA and the companies involved, including KIP Protocol and Kelsier Ventures, led by Hayden Davis, who admitted to profiting $100 million.
Milei is Exonerated!
Recently, the Anti-Corruption Office reportedly concluded that Milei’s post, made from his account, did not violate public ethics laws as it was not an official act. The investigation unit was dissolved in May after forwarding findings to prosecutors, though no public results were shared, sparking criticism of a cover-up. However, a federal criminal court in Argentina continues to investigate Milei and others for fraud and possible criminal association.
Internationally, lawsuits in the United States and the U.K. accuse Milei and $LIBRA’s creators of market manipulation and fraud. In March, Argentine prosecutors sought an Interpol Red Notice for Davis, citing his role in the collapse. The U.S. Department of Justice and the Securities and Exchange Commission also examine potential financial misconduct.
Meanwhile, Circle, a major crypto firm, recently froze $57.6 million in USDC linked to Davis’ wallets following a U.S. court order, a key step in recovery efforts for affected investors. The outcome could reshape Argentina’s crypto regulations and Milei’s political future as legal battles intensify across three countries.
