Key Takeaways
- The Argentine National Anti-Corruption Office has cleared President Javier Milei of any ethical misconduct in the high-profile $LIBRA crypto promotion scandal.
- The investigators found that despite significant financial losses exceeding $250 million and numerous legal actions, the post from the President’s account did not rise to the level of official government activity or endorsement.
- A separate federal criminal court has an ongoing investigation into the scandal.
The Anti-Corruption Office (AO) in Argentina has cleared the country’s President, Javier Milei, of any wrongdoing, stating that he acted in a personal activity when he promoted the $LIBRA cryptocurrency last February.
According to an announcement by the anti-corruption office, President Javier Milei did not violate the country’s public ethics laws regarding the $LIBRA cryptocurrency, which experienced a dramatic rise and fall in a widely publicized event in February.
The key individuals implicated in the investigation alongside the President were his sister, Karina, and Hayden Davis, CEO of Kelsier Ventures, who faced allegations related to fund mismanagement. While all the individuals mentioned were associated with the President in some way, the investigation team didn’t find any evidence implicating the President himself, highlighting the challenges of attributing responsibility in decentralized and rapidly evolving cryptocurrency markets.
President Javier Milei initially promoted the $LIBRA cryptocurrency in his personal X account, saying it was his way of supporting startups and small businesses in his country. However, he quickly deleted the post following a 90% decline in the token’s market capitalization from over $2 billion. Following the scandal that the local media dubbed “Crytogate,” there were calls for the impeachment of President Javier Milei by opposition figures, as well as a slew of lawsuits from lawyers representing investors whose funds were allegedly misappropriated. In response, the President asked the OA to conduct an investigation:
“To determine whether there was improper conduct on the part of any member of the National Government, including the President himself.”
Now, a report from the OA’s office states that:
“Milei’s, [Milei’s promotional post], which is not connected to administrative acts, has no allocation of public resources, or institutional support, should be interpreted as an act of individual or private communication that has not generated any official public policy direction of any kind.”
Experts Compared “Cryptogate” To Crypto Rug Pulls.
The $LIBRA scandal has reignited debates about the need for stricter crypto regulation, with experts emphasizing the importance of ethical promotion, transparency, and accountability to prevent similar incidents. Industry experts compared “Cryptogate” to crypto rug pulls, where influential figures make statements that sway market dynamics to the detriment of regular retail investors. The $LIBRA case highlights the intersection of politics and crypto markets, underscoring the necessity for clear guidelines for government officials’ involvement in digital asset promotion.
Conclusion
The clearance of President Javier Milei in the $LIBRA crypto scandal signals a crucial step in Argentina’s efforts to navigate the complexities of cryptocurrency regulation. While the President may have been absolved, the substantial financial losses and ensuing legal actions underscore the urgent need for robust regulatory frameworks to foster a safer and more stable cryptocurrency environment in Argentina and beyond.
Frequently Asked Questions
Was $LIBRA linked to the Argentina government?
No, but one of its promoters allegedly paid Karina, the President’s sister, for endorsements, creating a perceived connection.
How did crypto market insiders handle the scandal?
They reportedly accumulated tokens early, then sold them in coordinated dumps, causing the price to crash while they profited.
How can retail investors avoid falling victim to similar scandals?
Watch out for political endorsements, check pre-launch wallet distributions, and be skeptical of coins with sudden influencer hype.
