Key Highlights
- •An Argentine congressional commission has accused President Javier Milei of "alleged fraud" linked to the promotion of the $LIBRA token.
- •A federal judge has frozen the assets of individuals suspected of organizing the $LIBRA token promotion, which resulted in over $100 million in investor losses.
- •Despite an earlier administrative probe clearing Milei, criminal and international investigations into the matter are ongoing.
Argentina's political landscape is once again being shaped by the fallout from the collapsed $LIBRA token. A congressional commission has now accused President Javier Milei of "alleged fraud," marking a resurgence of controversy after he was cleared by the Anti-Corruption Office months prior.
A new report, released by lawmakers in the Chamber of Deputies and reported by major Argentine and international news outlets, concludes that both President Milei and his sister, Karina Milei, bear "political responsibility" for promoting what investigators now categorize as a suspected cryptocurrency scam.
Fraud Probe Reignited by $LIBRA Token Promotion
The commission's report specifically references a February social media post where President Milei publicly endorsed the $LIBRA memecoin with the message: "The world wants to invest in Argentina. $LIBRA."
Following this endorsement, the token experienced a rapid surge in value before collapsing within a 24-hour period, leading to estimated investor losses ranging from $100 million to $120 million. Industry experts have characterized the incident as a typical rug pull, while President Milei has stated that he was unaware of the project's specifics.
Previous Clearance Contrasts with New Accusations
These renewed accusations stand in contrast to the ruling previously issued by Argentina's Anti-Corruption Office (OA). At that time, the investigation found no ethics violations, concluding that Milei had promoted $LIBRA in a "personal capacity," without utilizing public resources or implementing official policy.
Federal Judge Freezes Assets of $LIBRA Operators
The legal ramifications of the $LIBRA token incident intensified last week. On November 11, federal judge Marcelo Martínez de Giorgi ordered a nationwide asset freeze. This action targets U.S. businessman Hayden Davis, along with Argentine operator Orlando Mellino and Colombian national Favio Camilo Rodríguez Blanco, all of whom are allegedly involved in the movement of funds associated with the token.
Investigators have presented evidence suggesting that Davis transferred $507,500 through Bitget just 42 minutes after appearing in a selfie with President Milei in January. Recovered communications indicate that Davis claimed to have influence within President Milei's inner circle, including assertions of sending money to the president's sister.
Authorities suspect that the three individuals operated a cryptocurrency exchange designed to launder proceeds derived from the $LIBRA token before its market collapse.
Future Developments in the $LIBRA Token Case
Argentina's criminal investigation into the $LIBRA token remains active, and the findings from the congressional commission have been submitted to federal prosecutors. From a political standpoint, any immediate moves toward censure appear unlikely, especially as a new Congress, largely comprised of Milei allies, is set to take office in December.
Concurrently, the judicial investigation is gaining momentum. Investigators are actively tracing offshore cryptocurrency wallets, suspicious financial transfers, and potential money-laundering connections linked to the operators of the token. For affected investors, the critical question remains whether authorities can recover any of the lost funds and how extensively the scandal may broaden as the financial trail continues to be uncovered.