Argentina's Milei Closes Executive Crypto Probe, But Judicial Inquiry Continues

Argentine President Javier Milei has officially disbanded the executive investigative unit tasked with probing the controversial Libra memecoin scandal, a move that comes barely three months after its formation.

However, as reported by DL News, this action does not signal the end of the inquiry, as a federal judge's investigation into the matter is actively proceeding.

The now-disbanded task force was established by Milei himself to gather information on the Libra memecoin, which the president had promoted on social media on February 14. Following his post on X, the token's market value surged dramatically to $4.5 billion before plummeting by more than 97% within hours, ultimately settling at a mere $14 million. This rapid collapse reportedly allowed insiders to profit by over $100 million.

According to a decree signed by President Milei and Justice Minister Mariano Cúneo, the task force had "fulfilled its purpose." Yet, local lawmakers were quick to criticize the decision. Opposition lawmaker Julia Strada stated on X that "The UTI was always a front," a sentiment echoed by Congressman Estebán Paulon, who remarked, "The mask has slipped. They are experts in impunity."

Despite the executive order, the scandal continues to unfold under judicial scrutiny. Federal Judge María Servini, who is overseeing the case, has ordered banks to provide access to financial records for key suspects, including President Milei and his sister, Karina Milei. The judicial order seeks comprehensive financial activity data dating back to 2023, encompassing banking records, securities holdings, and any suspicious asset growth. Karina Milei has been accused of accepting bribes in exchange for arranging access to the president, with Hayden Davis, the alleged mastermind behind the Libra scandal, reportedly among those granted such access.

President Milei has consistently denied actively promoting the memecoin, stating in a previous interview that he shared information about $LIBRA in good faith, believing it could benefit Argentine entrepreneurs. He acknowledged the fallout as a "slap in the face" but downplayed its impact on Argentine investors, claiming most affected traders were experienced in volatile markets. However, blockchain analysts have previously linked $LIBRA's insiders to other controversial projects, including the $MELANIA token, raising concerns about coordinated trading practices.

The ongoing judicial probe, with its focus on financial transparency and alleged illicit gains, ensures that the Libra memecoin scandal remains a significant point of contention in Argentina's political and financial landscape, despite the executive branch's attempt to close its own investigation.