President Milei Ends Libra Inquiry, Raising Fresh Cover-Up Fears Over Crypto Scandal

The dissolution of the government task force investigating the $250 million Libra crypto scandal promoted by Argentinian President Javier Milei has deepened public distrust and harmed accountability efforts.

Argentina’s President Dissolves Investigative Unit

Argentine President Javier Milei has officially disbanded a government task force investigating the controversy surrounding the now-defunct Libra cryptocurrency project. The decision, enacted through a May 19 decree co-signed by Justice Minister Mariano Cúneo Libarona, has effectively terminated the Investigative Task Unit (ITU) just three months after its formation.

The ITU was tasked with investigating potential irregularities in the project’s development and Milei’s involvement, along with that of his sister, Karina Milei. Its mandate included gathering documents from domestic and international agencies, responding to legal inquiries, and identifying any attempts to tamper with evidence.

A Controversial Promotion and Its Aftermath

Libra, a memecoin project, gained widespread attention when Milei, who took office in 2023, publicly supported it via social media. The president’s endorsement briefly sent the token’s value soaring from near zero to $5, momentarily propelling its market capitalization to nearly $5 billion. However, the token’s price collapsed within days, leaving retail investors nursing estimated losses of $250 million. The event was widely viewed as a pump-and-dump scheme, prompting intense scrutiny from both local authorities and investors.

Official Justification and Opposition Criticism

According to the official decree, “The Research Task Unit is dissolved” after completing its mandate. Government records claim the task force has “fulfilled the functions assigned to it,” though no public report of its findings has been released. The decision arrives despite mounting calls from opposition lawmakers to continue probing the scandal, with several political factions seeking to activate a congressional investigative commission as early as May 20, according to local media outlet Clarin.

No Progress by Special Committee

Meanwhile, a special congressional committee comprising 28 lawmakers was also formed to investigate the incident. However, progress has stalled, with Justice Minister Mariano Cúneo Libarona and Economy Minister Luis Caputo both refusing to comply with a court-ordered summons on May 14, further fuelling public frustration.

Erosion of Public Trust

The scandal has severely impacted President Milei’s credibility. Recent local polls indicate that nearly 58% of Argentinians no longer trust the president following his involvement in the Libra incident. In a televised interview with Todo Noticias, Milei denied any misconduct, stating he merely shared information about a project designed to assist entrepreneurs in securing alternative funding.

Despite these assertions, the decision to dissolve the ITU without public disclosure of its investigative outcomes has deepened political tensions in Buenos Aires. With the congressional committee yet to initiate formal proceedings, concerns persist over whether the full extent of the scandal will ever be officially addressed.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice