President Javier Milei has officially dissolved the investigative unit examining his involvement in the $LIBRA crypto scandal, citing task completion.
Background
- Argentine President Javier Milei has signed a decree (332/2025) disbanding the Investigative Task Unit (UTI), which was formed to investigate the controversial $LIBRA cryptocurrency project.
- The UTI was launched on February 19, 2025, just days after Milei promoted $LIBRA on social media, calling it a private initiative meant to fund small businesses and spur economic growth in Argentina.
- Following Milei’s endorsement, $LIBRA briefly soared in value before collapsing by 90% in under two hours, causing an estimated $250 million in investor losses.
- The memecoin’s rapid crash led to public outcry and allegations of fraud, with critics describing the incident as a textbook “rug pull.”
Why Should You Pay Attention?
- The $LIBRA fallout represents one of the highest-profile crypto scandals involving a sitting head of state.
- The abrupt disbandment of the investigative unit, despite no public disclosure of findings, raises serious concerns over transparency and accountability in governance.
- Legal scrutiny continues both domestically and internationally, including class-action lawsuits filed in U.S. courts alleging deceptive promotion and negligence by Milei.
Who Said What?
- The official decree claims the unit’s purpose was fulfilled and that all relevant findings were forwarded to the Public Prosecutor’s Office.
- Justice Minister Mariano Cúneo Libarona co-signed the order, while María Florencia Zicavo, a close aide, led the now-defunct unit.
- Milei himself denied any knowledge of the $LIBRA project's inner workings, despite having promoted it as a sign of global confidence in Argentina’s economy.
- Lawmakers in Argentina's Chamber of Deputies had previously called for a congressional inquiry and summoned officials to testify.
- Judge María Romilda Servini remains in charge of the ongoing judicial investigation into Milei's potential role in the scandal.
Zooming Out
- The $LIBRA debacle highlights the volatile intersection of politics and crypto, with global implications for regulatory oversight and investor protection.
- The lack of transparency surrounding the dissolution of the investigative body leaves unresolved questions about whether financial misconduct occurred at the highest levels of government.
