Argentina’s President Javier Milei Shuts Down Unit Investigating Libra Crypto Scandal.

Argentina’s President Javier Milei has disbanded the Investigation Task Unit (UTI) probing the LIBRA cryptocurrency scandal. This task force was created three months ago to investigate the large-scale investment losses caused by the collapse of the memecoin.

Specifically, it was tasked with uncovering what role the president and his sister, Karina Milei, played in the collapse of Libra. However, the recent decision to shut down the investigative unit has raised concerns about the government’s commitment to transparency.

Milei Disbands Investigations Unit

According to the report, the team has completed information collection and handed over the information to the national prosecutor’s office. Therefore, President Milei signed a decree dissolving the task force investigating irregularities in the promotion of the cryptocurrency LIBRA.

The government noted that the relevant criminal investigation is still in progress. The prosecutor is also investigating whether there are economic crimes and potential conflicts of interest. Furthermore, the judge has frozen the assets of some of the people involved. A review of the property of Milei and his relatives has also been initiated.

In March, an Argentine federal prosecutor ordered the recovery of deleted social media posts that promoted the memecoin. He also requested detailed records of all LIBRA transactions since it launched to reconstruct the financial operations.

The LIBRA Scandal

The controversy began on February 14, 2025, when President Milei promoted the Solana-based memecoin on his X page. He described it as a private initiative aimed at boosting Argentina’s economy by funding small businesses.

This endorsement attracted significant investors, leading to a rapid surge in the token’s value. The token’s market price reached nearly $5 before plummeting by over 93% within hours, resulting in significant losses for investors.

The sharp decline led to widespread public outcry and political repercussions. Investors suspected a rug pull as subsequent investigations showed most LIBRA tokens were held by insiders who profited before the crash.

Many accused President Milei of fraud, questioning the role of government officials in cryptocurrency endorsements. As the controversy heightened, opposition lawmakers called for his impeachment. In response, Milei denied any links to the entity behind the token and ordered the Anti-Corruption Bureau to investigate the matter.