- Argentina’s president cleared of crypto scandal allegations.
- LIBRA’s value skyrocketed post-endorsement, then crashed.
- Criminal investigations into market manipulation continue.
Javier Milei, the President of Argentina, was cleared by the Anti-Corruption Office in the LIBRA crypto scandal, which occurred in February 2025.
LIBRA’s Surge and Collapse
Javier Milei promoted the Solana-based LIBRA cryptocurrency, resulting in a brief surge in its market cap. Despite concerns, he was cleared of legal misconduct. The Anti-Corruption Office stated, “That, in summary, said post, not connected with administrative acts… should be interpreted as an act of individual or private communication.”
The promotion led LIBRA’s price to soar, only to collapse soon after. The incident followed a classic pump-and-dump pattern as Milei’s backing spurred rapid investor interest.
Financial Impacts and Regulatory Lessons
LIBRA’s rapid increase and subsequent decline caused significant financial impacts, with estimated losses reaching up to $251 million. Criminal inquiries remain focused on potential market manipulation practices.
The LIBRA incident, affecting mainly local investors, has underscored the need for regulatory vigilance in cryptocurrency markets. President Milei, explaining his position, noted, “My post regarding LIBRA was purely personal and not an administrative act.” Observers note potential tightening of regulations aimed at preventing such occurrences.
