In a significant development for the cryptocurrency community, Argentina’s President Javier Milei has officially been cleared of any wrongdoing by the nation’s Anti-Corruption Office concerning the controversial LIBRA memecoin incident.
This determination, reported by various local news sources, confirmed that Milei’s actions did not violate any legal standards when he advocated for the cryptocurrency earlier this year.
Findings of No Misconduct
A recent statement from the Anti-Corruption Office noted that Milei operated as an economist rather than a government representative during his promotion of LIBRA on the social media platform X (previously known as Twitter) back in February.
The ruling highlighted that Milei’s social media account was created well before he assumed the presidency and was distinct from any governmental endorsements associated with the cryptocurrency.
The investigation, which was proactively initiated by Milei himself, was overseen by Alejandro Melik, who took office in December 2023. The findings revealed no evidence of state contracts or procedures related to the LIBRA memecoin, emphasizing the lack of official involvement.
Despite this recent ruling in Milei’s favor, ongoing inquiries continue in courts across Argentina, the United States, and Spain regarding the scandal. Earlier in April, Argentina’s legislative body voted to set up a commission to investigate further, though progress has been impeded by the ruling party.
Understanding the LIBRA Incident
The LIBRA scandal came to light on February 14, when President Milei publicly endorsed the cryptocurrency, asserting that it could bolster the Argentine economy, particularly aiding small enterprises.
Milei’s announcement provided a “contract number” for potential investors to access the token, which oddly was not available on major trading platforms. The initial value of LIBRA skyrocketed to over $5 but experienced a dramatic crash shortly thereafter, resulting in substantial losses for many involved.
Concerns have been raised about Milei’s connections with Hayden Davis, the architect behind the LIBRA memecoin. Investigative reports suggest that their collaboration involved several meetings, facilitated by two Argentine entrepreneurs, Mauricio Novelli and Manuel Terrones Godoy, prior to the token’s introduction.
The implications of these meetings became more pronounced when Sergio Morales, a former advisor with the National Securities Commission (CNV), resigned amid scrutiny related to his role in the scandal.
The comprehensive resolution issued by the Anti-Corruption Office referenced multiple cases from the US Supreme Court and explored the nuances in differentiating personal and governmental roles. Ultimately, it concluded that while some of Milei’s posts on his personal account touched upon public policies, they did so in a clearly unofficial manner.
Currently, the LIBRA token is trading at $0.030, representing a staggering decline of over 96% since its peak on February 14. However, it has shown some positive momentum lately, appreciating by 37% over the last month.
Image credit: BBC, chart provided by TradingView.com
