Argentina’s President Javier Milei has been cleared of any ethical violations by the country’s Anti-Corruption Office following his controversial promotion of the $LIBRA cryptocurrency earlier this year. According to the agency, Milei acted in a personal capacity when he endorsed the token via his private X account in February, meaning his actions did not breach Argentina’s public ethics code.
The endorsement triggered a meteoric rise in $LIBRA’s price, propelling the token’s market cap to over $2 billion before it collapsed by more than 90%. The aftermath sparked outrage among retail investors and political opponents, leading to what local media dubbed “Cryptogate.”
Although Milei later deleted the post and denied any official government involvement, the incident provoked calls for impeachment from opposition lawmakers and spurred multiple lawsuits from disgruntled investors who claim to have lost significant sums in the crash. Despite his clearance from the ethics body, the political and legal backlash shows no sign of slowing.
Milei Requested Ethics Probe Before Unit Was Dissolved
The ethics investigation into President Javier Milei’s involvement with the $LIBRA token was initiated at his own request earlier this year. According to a statement from the president’s office, the goal was to determine whether any members of the national government—including Milei himself—had acted improperly in relation to the controversial crypto promotion.
The Anti-Corruption Office later concluded that Milei’s post on X constituted a personal act of communication, entirely disconnected from formal government operations. In its translated report, the agency noted that the message did not involve public funds, carry institutional backing, or imply any official policy stance.
Despite the self-initiated probe, Milei’s government quietly dissolved the special investigative unit overseeing the $LIBRA case in May—just weeks after a federal judge sought access to his personal and family financial records. Among the documents requested were bank statements tied to Milei’s sister, who had limited contact with the token’s developers, including figurehead Hayden Davis. The administration defended the move, saying the unit’s work had been completed and all findings were forwarded to federal prosecutors.
Criminal and Civil Legal Cases Still Ongoing
Though Argentina’s Anti-Corruption Office has closed its administrative inquiry into the $LIBRA promotion, the legal fallout is far from over. A separate federal criminal investigation remains active, and a civil class action lawsuit involving plaintiffs from Argentina, the United States, and the United Kingdom is currently moving through the courts.
In the United States, financial authorities have already taken action. Two cryptocurrency wallets linked to $LIBRA frontman Hayden Davis—holding approximately $57.6 million in USDC—were frozen following a court order from the U.S. District Court for the Southern District of New York. According to the OA’s report, Davis had his first meeting with Milei on January 30, just weeks before the token’s promotional campaign erupted.
The report also sought to clarify Davis’ role, noting that he had no formal affiliation with the Argentine government and was introduced by representatives of KIP Protocol, one of the early backers of the $LIBRA project. However, investigators are still working to untangle the web of relationships and determine whether any insider activity or cross-border fraud occurred during the token’s rapid rise and collapse.
Quick Facts
- Argentina’s Anti-Corruption Office ruled that President Milei’s promotion of $LIBRA was not an ethical or administrative violation.
- A separate criminal investigation continues, probing market manipulation and securities violations.
- $LIBRA surged to over $2 billion market cap before collapsing due to insider sell-offs.
- Political and international legal fallout continues, with U.S. authorities said to be reviewing the case.
