Argentina’s President Javier Milei got a clean bill of health from the country’s Anti-Corruption Office regarding the controversial Libra memecoin. This cryptocurrency caused major losses for investors earlier this year.
No Legal Wrongdoing Found
The Anti-Corruption Office announced that Milei didn’t break any laws when he promoted Libra on X (formerly Twitter) back in February. Their Friday report stated that, as an economist, not a public official, his actions were above board. His personal social media account existed long before he became president and wasn’t connected to any government business involving Libra. The office, led by Milei’s appointee Alejandro Melik, emphasized that no government contracts or processes involved Libra. Interestingly, Milei himself requested this investigation.
Despite this, the legal battle isn’t over. Courts in Argentina, the US, and Spain are still looking into the matter. Argentina’s lower house even formed a commission to investigate, though the ruling party seems to be slowing things down.
The Libra Debacle
The whole thing blew up on Valentine’s Day when Milei endorsed Libra, claiming it would boost Argentina’s economy by helping small businesses. He even gave out a “contract number” to find the token, which wasn’t listed on any major exchanges. Libra’s price soared to over $5, then crashed to almost nothing within hours, wiping out thousands of investors.
Milei’s connection to Libra creator Hayden Davis is also under scrutiny. Reports say they met several times before the launch, facilitated by Argentine businessmen Mauricio Novelli and Manuel Terrones Godoy. This raised eyebrows, especially after Sergio Morales, a former advisor to Argentina’s National Securities Commission, resigned amidst a prosecutor’s investigation.
The Anti-Corruption Office report delved into the complexities of separating personal and official responsibilities, referencing US Supreme Court cases. They concluded that even though Milei sometimes mentioned public policy on his personal account, it was all done before he took office.
The Aftermath
Libra currently trades at $0.030 – a whopping 96% drop from its peak. However, it has seen a 37% increase over the past month. The investigation continues.
