Argentine President Javier Milei has dissolved the special investigative unit he established to probe alleged wrongdoing related to his promotion of the controversial LIBRA cryptocurrency.
The decision, announced in a decree published in the Official Gazette, comes as the unit concluded its work, which focused on examining complaints regarding Milei’s involvement in the so-called “cryptogate” scandal.
Milei’s LIBRA Promotion Backfires
The decree, signed by Milei and Justice Minister Mariano Cúneo Libarona, states that the unit had fulfilled its mission by forwarding gathered information to the Public Prosecutor’s Office.
This information was sourced from various government entities, including the Anti-Corruption Office, the Central Bank, and the Financial Information Unit (UIF), among others.
The Investigative Task Unit (UTI) was created on February 19, just five days after the launch of the LIBRA memecoin, which initially surged in value before experiencing a dramatic decline.
Investors reportedly lost at least $250 million following the rapid devaluation of LIBRA, which was promoted by Milei as a “private project” aimed at stimulating the Argentine economy.
Milei’s promotion of the cryptocurrency on social media suggested a promising future, stating, “The world wants to invest in Argentina. LIBRA.” However, the token’s value skyrocketed and then plummeted by 90 percent within hours, leading industry experts to label the situation a “rug pull”—a scam where developers quickly cash out after attracting investors.
Argentina’s Congress Forms Inquiry Commission
Despite the ensuing turmoil, Milei later distanced himself from the project, claiming he was unaware of its details. The scandal prompted lawmakers in Argentina’s lower house to support the formation of a commission of inquiry to investigate potential misconduct surrounding the LIBRA launch. This commission is expected to summon key government officials for testimony regarding the affair.
Judge María Romilda Servini has been assigned to investigate Milei’s connection to LIBRA, amid allegations of possible fraud and misconduct. However, no public information has emerged regarding the Public Prosecutor’s Office’s findings on whether financial crimes or conflicts of interest involving government officials occurred.
The fallout from the LIBRA scandal has extended beyond Argentina’s borders, with allegations of fraud surfacing in US courts. A class-action lawsuit has been filed against Milei, accusing him of “deceptive promotion” and negligence, asserting that investments could not have been made without his endorsement.
To date, no official reports or findings from the now-dissolved UTI have been released. This unit, which operated under the Justice Ministry, was responsible for gathering information and collaborating with the judiciary during the investigative process.
Featured image from Bloomberg, chart from TradingView.com
