Javier Milei Cleared Of LIBRA Controversy Charges

Key Takeaways

• President Javier Milei was cleared of breaching ethics laws in connection with a social media post endorsing the LIBRA meme coin.
• The Anti-Corruption Office concluded that Milei acted in a personal capacity, not as head of state.
• The post triggered a sharp market reaction, resulting in an estimated $251 million in investor losses.
• A federal court investigation remains active, despite the watchdog’s ruling and the disbanding of the LIBRA task force.
• Milei’s approval rating has suffered, reflecting the political fallout from the incident.

The LIBRA Incident: A Timeline

A Viral Post & A $251 Million Loss

On February 14th, Milei posted about the LIBRA token on X, where he has been active since 2015.

President Milei’s Now Deleted Post

Source: X (@JMilei)

The post triggered a sharp surge in LIBRA’s market cap, reaching $4 billion before the token plummeted in value by approximately 94% within hours. The price action bore strong hallmarks of a pump-and-dump scheme, causing investors to lose an estimated $251 million.

Following the token’s crash, opposition leaders accused Milei of misusing his influence and called for his impeachment.

Personal Expression, Not Presidential Promotion

No Misuse Of Public Resources

In its June ruling, the Anti-Corruption Office stated that Milei’s post was made in a personal capacity and not in his official role as head of state. The office highlighted that no public funds, government platforms, or institutional resources were used to promote LIBRA.

The OA emphasized that such online activity is protected under Argentina’s constitutional guarantees of civil and political expression.

The Role Of Social Media

The OA pointed to Milei’s long history of using social media as a private citizen, noting that his account predates his presidency by nearly a decade. This distinction was crucial in the determination that the post was not a breach of federal ethics laws.

Criminal Investigation Still Ongoing

Despite the Anti-Corruption Office’s decision, a federal criminal court is continuing its investigation into Milei’s potential role in the LIBRA scandal. As of now, no formal charges have been brought against the president.

On May 19th, Milei signed a decree to dismantle a special task force that had been set up to investigate the LIBRA controversy. The move raised eyebrows across the political spectrum, with critics alleging a lack of transparency and accountability.

No disciplinary or legal action has been taken against any public official connected to the incident.

Polling Data Suggests Reputational Damage

While Milei may have been legally cleared, the scandal has taken a toll on his public image. According to a March survey by Zuban Córdoba, national approval ratings dipped from 47.3% in November to 41.6% in March, just weeks after the LIBRA controversy erupted.

Percentage of Argentines Who Trust (Confio) & Distrust (Desconfio) Milei Following The LIBRA Controversy

Source: Zuban Córdoba

The polling group surveyed 1,600 Argentine citizens, asking if they still trusted the president after the token’s collapse. The findings suggest that even if Milei avoided legal consequences, the court of public opinion is less forgiving.

FAQ

Did President Milei financially benefit from promoting LIBRA?

There is currently no public evidence indicating that Milei received any financial compensation or held any LIBRA tokens. He has maintained that he simply “spread the word” rather than actively promoting or endorsing the token for personal gain.

Why was the LIBRA meme coin considered suspicious?

LIBRA exhibited characteristics of a classic pump-and-dump scheme, rapid price increase followed by a sudden crash. This pattern typically points to market manipulation, especially when driven by celebrity or political endorsements.

Was the task force investigating LIBRA effective?

Critics argue that the task force lacked transparency and failed to conduct a meaningful investigation. Its disbandment in May 2024 only fueled further skepticism about the government’s willingness to hold itself accountable.

Is Milei still under investigation?

Yes. A separate federal criminal court probe is ongoing. The Anti-Corruption Office’s ruling only applies to administrative ethics violations, not potential criminal misconduct.