Argentina’s President Milei Faces Severe Political and Legal Challenges Over Cryptocurrency LIBRA Scandal
Argentinian President Javier Milei is facing significant political and legal challenges due to a fraud scandal involving the cryptocurrency LIBRA token. According to a report by The Block, the Anti-Corruption Office of Argentina determined that Milei promoted LIBRA in a personal capacity and did not violate the country’s public ethics standards.
In February of this year, Milei promoted Libra on his X account, claiming it was to support small businesses and startups in Argentina. However, after the token’s market value plummeted by 90% from its peak of $2 billion, he deleted the related tweets. This incident has been referred to by local media as “Cryptogate,” leading opposition politicians to call for impeachment and lawyers representing investors who lost money to file lawsuits.
At that time, Milei requested the Anti-Corruption Office to investigate to “clarify whether any members of the national government, including the president himself, have engaged in misconduct.” Reports indicate that the agency’s findings stated:
The investigative unit that previously handled this case was dissolved by Milei in May, when a judge requested to review the bank records of Milei and his sister. Reports indicate that she had some contact with members of the Libra team, including Hayden Davis. The Milei government stated that the investigative unit’s mission had been completed and the results were handed over to the prosecutor’s office.
Although the conclusions of the Anti-Corruption Office symbolize the end of the administrative investigation, the investigation by the federal criminal court is still ongoing. Additionally, a multinational class-action lawsuit is currently being heard in court, with plaintiffs from Argentina, the United States, and the United Kingdom.
A recent order from the Southern District Court of New York has frozen two wallets belonging to Davis, containing $57.6 million worth of USDC. The report noted that Davis first met with Milei on January 30 and stated, “Mr. Davis has had no relationship with the Argentinian government, past or present; he was introduced as one of its project partners by representatives of KIP Protocol.”
